Iran's Foreign Minister Abbas Araghchi has issued a stark warning that any attempt to circumvent the Strait of Hormuz routes agreed upon with the United States will significantly escalate regional tensions.
The statement follows a rapid escalation in hostilities, with Iran's Islamic Revolutionary Guard Corps (IRGC) targeting American military bases in Bahrain and Kuwait in retaliation for US strikes on multiple Iranian targets.
President Trump has responded by threatening to "annihilate" Iran, signaling a potential for further military action.
The diplomatic row directly threatens the world's most critical energy chokepoint.
With Tehran asserting control over the strait and the IRGC previously warning that unauthorized vessels would be "dealt with," the risk of physical disruption to oil and gas shipments has risen sharply.
Markets are likely to price in higher volatility for Brent crude and shipping insurance rates as traders assess the probability of route closures or attacks on commercial traffic.