US-Iran Tensions Escalate Sharply. Iran Blocks Strait of Hormuz, WTI Crude Surges Over 7%

Tradingkey - Geopolitical tensions between the US and Iran have escalated sharply as Iran announced a total blockade of the Strait of Hormuz and suspended all negotiations with the US, sending the two major crude oil futures back to one-week highs.

According to Iranian media reports, as Israel continues its strikes on Lebanon and cease-fire agreements have been violated on all fronts, the Iranian negotiating delegation has suspended negotiations and text exchanges with the US conducted via mediators. Simultaneously, Iran has decided to fully blockade the Strait of Hormuz and activate other fronts, such as the Bab-el-Mandeb Strait.

Iranian officials have demanded that Israel immediately cease military operations in Gaza and Lebanon. Iran also demands that Israel fully withdraw from its occupied areas in Lebanon before negotiations can resume. Iran and the "Axis of Resistance" have decided to implement a total blockade of the Strait of Hormuz. As a retaliatory measure, other fronts may also be activated, including the Bab-el-Mandeb Strait. No negotiations will take place until Iran's demands to halt Israeli operations in Lebanon and Gaza are satisfied.

Driven by these developments, the two major crude oil futures surged in the short term. As of press time, WTI crude oil futures rose over 7% to $94.23, while Brent crude oil futures climbed more than 6% to $96.90.

[Source: Futubull]

U.S. Central Command announced on May 31 that it carried out self-defense strikes against radar and drone command-and-control facilities in Iran's Gorough region and Qeshm Island after Iran shot down a U.S. MQ-1 drone. Previously, on May 25, the U.S. military had struck Iranian missile positions and mine-laying vessels. Both sides have exchanged fire multiple times recently, and the situation remains tense.

U.S. President Trump stated in a social media post today that Iran "really wants" to reach a deal, and that it would be "a deal that's good for the United States and our allies."