Iranian navy soldiers board an armed speedboat in the Persian Gulf near the Strait of Hormuz, about 800 miles south of Tehran, on April 30, 2019.
Morteza Nicobazul | Nur Photo | Getty Images
Iran partially closed the strategically important Strait of Hormuz on Tuesday, state media reported, citing “security precautions” as Tehran’s Revolutionary Guards conduct military exercises in the strait.
The move comes as the United States and Iran are holding talks in Geneva, Switzerland, aiming to resolve the ongoing dispute over Iran’s nuclear program.
It is the first time Iran has blocked part of the Strait of Hormuz, a key international waterway connecting oil producers in the Middle East to major markets around the world, since US President Donald Trump threatened Iran with military action in January.
This strait, located in the Gulf between Oman and Iran, is recognized as one of the world’s most important oil chokepoints.
In 2025, about 13 million barrels of crude oil per day passed through the Strait of Hormuz, accounting for about 31% of global offshore oil flows, according to data provided by market intelligence firm Kpler.
Tuesday’s temporary closure of the waterway was aimed at ensuring transport safety as part of the Revolutionary Guards’ “Smart Control of the Strait of Hormuz” exercise. The exercise is aimed at improving Iran’s operational readiness and strengthening deterrence, among other objectives.
According to Reuters, Iran and the United States reached an understanding of “guiding principles” during the talks, Iranian Foreign Minister Abbas Araghchi told reporters after the talks ended.
He added that progress does not mean an agreement will be reached soon and more work is still needed.
Energy market participants were closely monitoring the outcome of talks between the United States and Iran, especially as both countries increase their military presence in the region.
Oil prices finally fell, erasing earlier gains. international benchmark brent Crude oil futures for April delivery fell 1.8% to $67.48 per barrel. west texas intermediate Futures for March delivery fell 0.4% to $62.65.
Jakob Larsen, chief safety and security officer at Vimco, which represents shipowners around the world, said the temporary closure of the Strait of Hormuz was likely to cause “minor inconvenience and delays” to imported vessels bound for the Persian Gulf, but not major disruption.
“This exercise establishes a live-fire training area that overlaps the upstream portion of the Strait of Hormuz traffic separation plan and requires ships to stay away from the area for several hours,” Larsen said.
He added: “Given the level of tension in the region, it is expected that commercial vessels will comply with Iran’s request to stay away from the exercise area.”
—CNBC’s Lori Ann LaRocco and Lee Ying Shan contributed to this report.
