Latest Update on US-Iran Situation: Iran Claims to Have Closed the Strait of Hormuz, US Response States It Has Not Closed

BlockBeats News, March 3rd, Ebrahim Jabari, advisor to the Iran Revolutionary Guard Commander, stated that the Strait of Hormuz has been closed, Iran will fire at any ship attempting to pass, and will attack oil pipelines and tanker routes. This is the most explicit warning since Iran notified ships on Saturday that it would close this export passage, which could disrupt one-fifth of global oil shipments and drive up crude oil prices significantly. According to a Fox News reporter, the US Central Command stated that the Strait of Hormuz has not been closed despite the claims made by the Iran Revolutionary Guard. Iran is not patrolling the strait, and there is currently no indication that they are laying mines in the strait.

The international crude oil settlement price surged, with the light crude oil futures price for April delivery on the New York Mercantile Exchange rising by $4.21 to close at $71.23 per barrel, a 6.28% increase on the 2nd day. US Secretary of State Pompeo stated on Monday that the US will take action to mitigate the energy price surge caused by the Iran conflict. Pompeo said that US Treasury Secretary Mnuchin and Energy Secretary Brouillette will announce related plans on Tuesday.

Additionally, US State Department officials stated that the US State Department is urging Americans to "depart immediately" from over a dozen countries and regions in the Middle East. These locations include Bahrain, Egypt, Iran, Iraq, Israel, the West Bank and Gaza, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, the UAE, and Yemen. According to CNN, a US senior official revealed that the US is preparing for a "major attack" on Iran in the next 24 hours.

Former US Treasury Secretary Yellen stated that the Iran conflict is making the Fed more inclined to stay put. The duration of the Iran conflict's impact on the oil market will determine how much it will dent US economic growth and bring inflationary pressure, making the Fed's job more complicated. According to CME's "FedWatch," the probability of the Fed keeping rates unchanged in March is 97.5%, and the market is still betting on a stand-pat policy in the near term. JPMorgan Chase CEO Dimon stated that there would be no significant inflation if the Iran conflict does not escalate. The current situation will lead to a small rise in natural gas prices. The US Dollar Index surged by 0.79% on March 2nd, closing at 98.382 in the forex market.