Iran Declares Strait of Hormuz Will Remain Closed, Oil Prices Spike

Iran’s new Supreme Leader, Mojtaba Khamenei, has released his first statement since succeeding his father, declaring that the Strait of Hormuz will remain closed. This led to a spike in oil prices, with Brent Crude oil rising to an intraday high of $100 on the back of his statement.

Iran To Keep Strait of Hormuz Closed, Oil Prices Jump

In a message read out on Iranian state television, Khamenei stated that the Strait of Hormuz, a major oil chokepoint, should remain closed as a tool to pressure the enemy. This came as he remarked that they will not give up on avenging the blood of the martyrs, signaling plans to escalate the war against the U.S. and Israel.

“All U.S. bases should immediately be closed in the region, and those bases will be attacked,” the statement read. Oil prices rose on the back of the first statement from Iran’s new Supreme Leader. TradingView data shows that Brent crude oil rose to an intraday high of $100, up over 6% on the day.

U.S. oil price futures, WTI, also rose following the statement from the Supreme Leader, reaching $95 and up over 8% today. As CoinGape reported, IEA members agreed to release a record 400 million barrels of oil to mitigate the supply shock and curb volatile oil prices. However, this move has done little to ease market concerns.

It is worth noting that about 20% of the global oil supply passes through the Strait of Hormuz, which is why its closure is likely to keep prices rising. Iran has already taken moves to ensure that the Strait remains closed by deploying naval mines in the shipping lanes. Bloomberg estimates that oil could rise to $160 per barrel if the Strait of Hormuz remains closed for three months.

Trump Signals The Focus Is To Stop Iran

In a Truth Social post, Trump signaled that stopping Iran from having nuclear weapons is of greater importance than the rising oil prices. This came as he noted that the U.S. is the largest oil producer in the world and so makes a “lot of money” when prices go up.

“BUT, of far greater interest and importance to me, as President, is stopping an evil Empire, Iran, from having Nuclear Weapons, and destroying the Middle East and, indeed, the world. I won’t ever let that happen!” he said.

The move to keep the Strait of Hormuz closed is likely to escalate tensions further, as U.S. President Donald Trump had earlier warned of greater military action if Iran didn’t reopen the oil chokepoint. As CoinGape reported, the odds of the U.S.-Iran conflict lasting till May have now spiked to 70%, signaling a prolonged war that could also drive inflation higher with rising oil prices.

Rising oil prices and the inflationary pressure continue to weigh on Bitcoin and the broader crypto market. The leading crypto sharply dropped below $70,000 after Iran’s Supreme Leader said the Strait of Hormuz would be kept closed. BTC is currently trading at around $69,500, according to TradingView.