Iran: Strait of Hormuz to Open Only Under Local Regulations, Not US Threats

Iranian Parliament Speaker Mohammed Bakir Galibaf stated that the opening of the Strait of Hormuz will be determined solely by Iran’s internal regulations, and that responses will be made to any potential US attacks. This statement has prompted a reassessment of geopolitical risk in the region. The Strait of Hormuz is a critical transit point through which more than 20% of global oil flows. Consequently, any change in local regulations could lead to an increase in risk premiums and fluctuations in transportation costs. Following the development, oil prices experienced a modest uptick in markets. Investors noted a slight rise in the value of risk‑bearing assets amid expectations of reduced geopolitical uncertainty. Investors are advised to continue monitoring the impact of such geopolitical developments on markets. This is not investment advice.