Iran says the Strait of Hormuz stays closed until Washington accepts defeat, and President Trump is telling Americans to brace for higher gasoline prices as the standoff runs into a new week. Only two vessels crossed the chokepoint on Friday, neither carrying crude, while Brent and WTI both posted weekly gains.
No crude tankers crossed the Strait of Hormuz on Friday, and Iran says the blockade will not lift until the United States accepts defeat. Iran's Deputy Foreign Minister Kazem Gharibabadi said Saturday that the strait would open and close only on Iran's terms, and that the blockade would continue until Washington accepted reality.
Foreign Minister Abbas Araqchi added that Tehran has not decided whether to resume talks with Washington, saying the US must first meet Iran's conditions on the strait before negotiations can restart.
Crude posts a weekly gain as traffic dries up
Brent crude is on track for a 6.0% weekly gain. WTI is up 5.4%, as traders price in an extended shutdown rather than a quick resolution. Only two vessels transited the strait on Friday, and neither was carrying crude, according to ship tracker Kpler — a fraction of the more than 130 ships that used to cross daily before the war. The chokepoint normally handles roughly a fifth of the world's oil supply.
Trump tells Americans to accept higher pump prices
Trump said at a Friday rally that Americans should accept "a tiny little bit more" for gasoline as the cost of stopping Iran from acquiring a nuclear weapon. He also suggested Washington could eventually declare the strait US territory once the conflict ends. US gasoline averaged $4.08 a gallon on Friday. That is up 29% from a year earlier, according to AAA.
Attacks on tankers keep the risk premium high
The UAE accused Iran of striking a third ADNOC tanker in the strait on Friday, following two earlier incidents the previous evening, and a bulk carrier was also hit by an unidentified projectile. There was no sign over the weekend that the two sides were moving toward peace talks in the war, which the US and Israel launched on February 28.
Iranian President Masoud Pezeshkian acknowledged on state television that US sanctions and a port blockade are driving up domestic inflation. Iran-backed Houthi forces in Yemen, meanwhile, fired missiles at the Red Sea port of Mocha on Friday, killing four civilians.
Source: Investinglive
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