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Iran Threatens US Warships Near Hormuz as Oil Prices Spike

Financial Times Markets •
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Iran has threatened to attack US Navy vessels attempting to enter the Strait of Hormuz, escalating tensions after President Trump announced plans to escort stranded commercial ships through the strategic waterway. Major General Ali Abdollahi warned that any foreign warships approaching the strait without Iranian coordination would be met with force.

The threat sent oil prices surging, with Brent crude jumping 5.1% to $113.72 briefly after reports—later denied by US Central Command—that Iranian forces had struck an American warship with two missiles. About 1,000 commercial vessels and 20,000 seafarers have been stranded in the Gulf since the conflict began in late February. Trump’s "Project Freedom" operation will deploy guided-missile destroyers, more than 100 aircraft, and 15,000 service members.

US Naval Command advised vessels to route through Omani territorial waters south of the strait, which Iran has warned are mined. A tanker was hit by unknown projectiles north of Fujairah on Monday, highlighting the immediate risks. The strait handles roughly 20% of global oil shipments, making any disruption a critical concern for energy markets.