Iran Partially Closes Strait of Hormuz During Military Drills

Picture Credit: Reuters

Iran temporarily closed parts of the Strait of Hormuz on Tuesday as its Revolutionary Guard conducted military exercises in the strategically vital waterway. State media described the move as a “security precaution,” marking the first such partial shutdown since U.S. President Donald Trump warned Tehran of possible military action earlier this year. The development comes at a sensitive moment, with U.S. and Iranian officials engaged in nuclear talks in Geneva.

The Strait of Hormuz, located between Oman and Iran, is one of the world’s most critical oil transit routes. Roughly 13 million barrels of crude per day about 31% of global seaborne oil flows, passed through the strait in 2025, according to shipping data. Any disruption, even temporary, is closely monitored by global energy markets given the region’s central role in supplying Asia, Europe and beyond.

Iran said the closure was linked to a Revolutionary Guard exercise dubbed “Smart Control of the Strait of Hormuz,” aimed at improving operational readiness and reinforcing deterrence capabilities. The live-fire drill reportedly required vessels to avoid parts of the inbound shipping lane for several hours, though the restriction was described as temporary and limited in scope.

Despite heightened tensions, early signs from diplomatic talks in Switzerland suggested cautious progress. Iranian Foreign Minister Abbas Araghchi said the two sides had reached an understanding on “guiding principles” regarding Tehran’s nuclear program, though he stressed that significant work remains before any formal agreement is secured. The parallel timing of military drills and negotiations underscores the delicate balance between diplomacy and deterrence.

Oil markets reacted but avoided panic. Brent crude and U.S. West Texas Intermediate futures both slipped after earlier gains, suggesting traders see the disruption as manageable for now. Shipping industry representatives said the exercise was likely to cause only minor delays rather than major supply interruptions, as commercial vessels were expected to comply with Iranian instructions during the drill.