Iran partially closed the strategically vital Strait of Hormuz on Tuesday for a limited military exercise, state media reported, as the country holds nuclear negotiations with the United States in Geneva.
The partial and temporary shutdown, described as “security precautions,” was conducted by Iran’s Revolutionary Guards under the “Smart Control of the Strait of Hormuz” drill, aimed at improving operational readiness and deterrence capabilities, according to Iranian state news agency IRNA.
Located between Oman and Iran, the strait is one of the world’s most important oil chokepoints, carrying about 13 million barrels per day in 2025—roughly 31 percent of global seaborne crude oil shipments, according to data from market intelligence firm Kpler.
“The exercise establishes a live firing area overlapping the inbound part of the Strait of Hormuz’s Traffic Separation Scheme,” Jakob Larsen, chief safety and security officer at BIMCO, a global shipowners’ organization, said. “Commercial shipping is expected to comply with the Iranian request to keep clear for a few hours, which may cause minor delays but no major disruptions.”
The closure marks the first partial shutdown of the waterway since U.S. President Donald Trump threatened military action against Tehran in January, underscoring the continuing sensitivity of the region’s maritime routes.
Tuesday’s move coincides with high-level talks in Geneva aimed at resolving disputes over Iran’s nuclear program. Iranian Foreign Minister Abbas Araghchi told reporters that the discussions concluded with an understanding of the “guiding principles,” though he stressed that further work is required before a formal agreement can be reached.
Energy markets initially reacted to the news, but oil prices later eased. Brent crude futures for April delivery fell 1.8% to $67.48 a barrel, while U.S. West Texas Intermediate (WTI) crude for March delivery dipped 0.4% to $62.65, reflecting cautious optimism over diplomatic progress.
“The Strait of Hormuz remains a critical artery for global energy supply, and even temporary closures are closely monitored,” said Sami Hassan, a Middle East energy analyst in Dubai. “Markets have factored in regional tensions, but the exercise’s limited duration prevented any sustained disruption.”
Iran has long used military drills in the strait to signal strategic leverage, especially amid rising U.S.-Iran tensions. The waterway connects Persian Gulf oil producers to major importers in Asia, Europe, and the Americas, making it a sensitive flashpoint in global energy security.
The partial closure comes as both Tehran and Washington maintain heightened military vigilance in the region, with naval forces from the U.S. Fifth Fleet and allied countries routinely monitoring maritime activity. Analysts say the timing of the exercise during nuclear negotiations sends a dual message: demonstrating operational readiness while preserving space for diplomacy.
For shipping companies, compliance with Iranian naval instructions is largely voluntary but widely observed, minimizing risks to commercial traffic. “Given the level of tension in the area, vessels typically respect exercise zones,” Larsen added.
Despite geopolitical risks, Iran continues to emphasize its economic and strategic interests in controlling critical oil transit routes. Analysts note that the combination of diplomatic engagement and calculated military signaling is a recurring feature of Tehran’s approach to international negotiations, particularly on sensitive issues like nuclear enrichment and energy exports.
Tuesday’s exercise highlights the delicate balance between regional security, global energy flows, and ongoing diplomatic efforts. Any misstep or prolonged disruption could reverberate across global oil markets, affecting prices and trade volumes.
The Strait of Hormuz is one of the world’s most strategically important maritime chokepoints, linking major Middle Eastern oil producers—including Iran, Saudi Arabia, and the United Arab Emirates—with global markets. Stretching approximately 56 kilometers (35 miles) at its narrowest point between Oman and Iran, the waterway handles about one-third of global seaborne crude oil shipments. In 2025, roughly 13 million barrels per day transited the strait, underscoring its critical role in international energy supply chains.
Iran has periodically used military exercises in the strait to assert its strategic influence and signal regional leverage, particularly amid tensions with the United States and Western powers. Previous closures or threats to close the waterway have triggered spikes in global oil prices, though most have been temporary and limited to exercises rather than full-scale blockades.
The region remains highly militarized, with the U.S. Fifth Fleet and allied navies maintaining a constant presence in the Gulf. Iranian Revolutionary Guards conduct frequent naval drills, often citing security and operational readiness, while international shipping lanes are closely monitored for safety.
Tensions over Iran’s nuclear program have periodically escalated, affecting maritime security and oil markets. The 2015 Joint Comprehensive Plan of Action (JCPOA) and its subsequent collapse heightened regional uncertainties, prompting repeated rounds of diplomacy between Tehran and Washington. The partial closure of the Strait of Hormuz in February 2026 coincides with ongoing nuclear talks in Geneva, highlighting the delicate balance between military signaling and diplomatic engagement.
Global energy markets are highly sensitive to disruptions in the strait, as even short-term closures can affect crude flows, shipping schedules, and market sentiment. While temporary exercises typically produce only minor shipping delays, any escalation or miscalculation carries the risk of broader disruption. Shipping organizations and insurers closely track Iran’s naval activity to assess potential impacts on commercial traffic and oil prices.
