Iran Guards say have 'complete control' of Hormuz Strait

TEHRAN

Fishermen work in front of oil tankers south of the Strait of Hormuz Jan. 19, 2012, offshore the town of Ras Al Khaimah in United Arab Emirates. (AP Photo/Kamran Jebreili, File)

Iran's Revolutionary Guards said yesterday they control the Strait of Hormuz, a vital shipping route for oil and gas, and any vessels seeking to pass through the waterway risk damage from missiles or stray drones.

"Currently, the Strait of Hormuz is under the complete control of the Islamic Republic's Navy," said Guards Navy official Mohammad Akbarzadeh in a statement issued on Fars news agency.

U.S. President Donald Trump said on March 3 the U.S. Navy was ready to escort oil tankers through the crucial Gulf shipping route.

"If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible," Trump said on his Truth Social platform.

The U.S. president also ordered Washington to provide insurance for commercial shipping. U.S. stocks cut their losses after the announcement, although crude prices continued to rise.

Oil extended gains Wednesday, with investors growing fearful about a surge in inflation and the impact on the global economy.

Observers warned that the continued choking of crude supplies from the Middle East would continue to push prices higher. 

Iranian strikes on several neighbours threatened to broaden the conflict, while uncertainty about how long the war would go on.

News that some oil fields in the region had been closed continued to put upward pressure on the commodity with some analysts warning that they could top $100 a barrel.