Iran warns US, controls Strait_of_Hormuz
Analysis based on 9 articles · First reported May 19, 2026 · Last updated May 23, 2026
The ongoing tensions and threats of renewed conflict between Iran and the United States, particularly concerning the Strait of Hormuz, are likely to cause significant volatility in oil prices and shipping costs. The potential for a full-scale assault on Iran, as instructed by Donald Trump, could lead to a sharp increase in geopolitical risk premiums across global markets. The United States' agreement to waive oil sanctions during negotiations offers a glimmer of hope for de-escalation, which could positively impact oil markets if a deal is reached.
Iran's army has warned the United States it will 'open new fronts' if attacks resume, following President Donald Trump's decision to hold off on a planned military offensive in hopes of a deal. This comes amid a shaky ceasefire in the Middle East war, which began on February 28. Washington and Tehran have been exchanging proposals, with the United States demanding Iran keep only one nuclear site and transfer enriched uranium, while refusing to release frozen assets or pay reparations. Iran insists on its own demands, including asset release, sanctions lifting, and war reparations. Iran has also asserted control over the Strait of Hormuz, a critical energy conduit, and announced the formation of the Persian Gulf Strait Authority to manage traffic, with the Islamic Revolutionary Guard Corps threatening permits for fiber optic cables. The United Arab Emirates reported a drone attack on its Barakah nuclear power plant originating from Iraq, where Iran backs groups accused of attacks. Qatar and Pakistan are mediating efforts to facilitate talks.
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