Full story
Ceasefire Strains
The U.S.-Iran ceasefire faces significant challenges as Israel's strikes on Lebanon and Iran's closure of the Strait of Hormuz complicate diplomatic efforts.
“Shipping remains at a standstill in the Strait of Hormuz despite the ceasefire agreement between the United States and Iran, dampening hopes for a resolution to one of the worst global energy disruptions in history”
President Trump tweeted that Iran is doing a very poor job of allowing oil to go through the Strait of Hormuz.
Iran's parliament speaker issued an ultimatum that negotiations cannot begin unless Israel halts attacks on Lebanon and the U.S. releases Tehran's frozen assets.
The strait remains effectively closed despite the ceasefire, with only a handful of vessels transiting compared to the prewar average of more than 100 daily.
The closure has sent oil prices soaring and disrupted global supply chains.
Shipping Standstill
Shipping traffic through the Strait of Hormuz remains at a virtual standstill despite the ceasefire.
Only a handful of vessels passed through compared to the prewar average of more than 100 daily.
Iran has insisted that ships must secure its permission and suggested it retains the right to impose a fee for passage.
The Iranian navy released a map indicating it may have mined the strait.
The UAE's Sultan Al Jaber condemned Iran's actions, stating the strait is not open.
Toll Controversy
Iran began demanding tolls from ships passing through the Strait of Hormuz.
Trump condemned the tolls, tweeting they better not be and if they are, they better stop now.
The tolling system's legality is questionable under international law.
The UN Convention on the Law of the Sea codifies freedom of navigation.
Neither Iran nor the U.S. has ratified the treaty.
Economic Impact
The blockade of the Strait of Hormuz has sent oil prices soaring.
Brent crude stood around $97, up more than 30% since the war started.
More than 600 vessels remain stranded in the Gulf.
It would take more than 10 days to move all vessels out of the Gulf if traffic returned to pre-conflict levels.
The disruption has also affected fertilizer supplies.
