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Iran claims control of Strait of Hormuz amid regional tensions

Basij paramilitary chief asserts Iranian authority over the strategically vital waterway, escalating geopolitical risks for oil transit.

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Sophie Laurent · FX & Rates Desk · 16 Aug 2026 · 1 min read
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Iran claims control of Strait of Hormuz amid regional tensions

Iran’s paramilitary Basij force has asserted that the Islamic Republic controls the Strait of Hormuz, a critical chokepoint for global oil shipments.

Speaking in a televised address, Brigadier General Gholamreza Soleimani, head of the Basij, stated that Iran maintains full authority over the waterway, which carries roughly one-fifth of the world’s seaborne oil. The claim comes amid heightened tensions in the region, where Iran has previously threatened to disrupt shipping in response to U.S. sanctions and regional pressures.

The Strait of Hormuz, located between Iran and Oman, is the primary route for oil exports from Gulf producers including Saudi Arabia, the UAE, and Iraq. Any disruption to transit through the strait could significantly impact global oil markets, driving volatility in prices.

Iran has repeatedly emphasized its military capabilities in the area, including missile systems and naval assets, as leverage in regional negotiations. The U.S. and its allies have maintained a naval presence in the region to safeguard shipping lanes, though diplomatic efforts to de-escalate tensions have yielded limited progress.

The latest assertion by the Basij follows a series of incidents in recent years, including attacks on oil tankers and the seizure of foreign vessels, which have raised concerns about the stability of one of the world’s most critical maritime corridors.

Analysts warn that further escalation could lead to supply disruptions, though direct military confrontation remains a low-probability scenario given the economic interdependence of regional actors.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Sophie Laurent
FX & Rates Desk

Sophie covers currency markets and central bank policy across Europe, with a focus on how rate decisions ripple through FX pairs. She has been tracking the ECB's policy path since the start of the current easing cycle.

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