Iran Strait Threats Raise Tensions, Oil Prices Fall

US intelligence revealed that after Israeli missile strikes on Iranian targets in June, Iran loaded naval mines onto military vessels in the Persian Gulf, raising fears of a potential blockade of the Strait of Hormuz. Although the mines were not deployed, the move was seen as a credible signal of Iran's capability and intent, possibly as a warning or feint. After subsequent US airstrikes on Iranian nuclear sites, Iran's parliament passed a non-binding measure to block the strait, but the final decision rests with the Supreme National Security Council. The White House credited US military actions with helping keep the strait open and deterring further escalation. Despite about 20% of global oil and gas passing through the Strait, oil prices have fallen, reflecting relief that no blockade occurred. It remains unclear whether the mines have been removed or if further Iranian action is planned.