Iran’s military has reimposed restrictions on the Strait of Hormuz again after accusing the US of violating the deal to reopen it, throwing the world’s energy crisis back into turmoil.
The military said it would return the strait to its “previous state” with armed forces controlling the area, according to reports on Iranian state media.
The country’s joint military command said on Saturday that “control of the Strait of Hormuz has returned to its previous state … under strict management and control of the armed forces.”
Tehran accused the US of “piracy” saying that its “so-called blockade” amounts to maritime robbery, with Iran previously saying it would shut the waterway if the US Navy blockade persisted.
The announcement came after Trump said the blockade would “remain in full force” until a deal was reached with the US, including on its nuclear energy program.
Nuclear deal
The closure also comes after Trump’s claims that a deal with Iran could be reached in days and that Tehran had agreed to suspend its nuclear energy program.
In an interview with Bloomberg, Trump asserted that any suspension on Iran’s nuclear activities would not expire, saying it would be “unlimited”.
He said: “Most of the main points are finalised. It’ll go pretty quickly.”
He also denied that the US would release any frozen funds to Iran, which was a key demand of the regime.
Prior to Iran retaking control, Trump also confirmed negotiations would continue “over the weekend”.
He said: “I just think it’s something that should happen. It’s something that only makes sense to happen. And I think it will. We’ll see what happens.
“I think that is going to be very beneficial. And the main thing is that Iran will not have a nuclear weapon.”
Potential strikes and stocks react
But the US President also floated the threat of resuming strikes on Iran once the current ceasefire expires next week.
Trump said: Maybe I won’t extend it, so you have a blockade, and unfortunately we have to start dropping bombs again.”
Oil prices plunged on Friday on fragile hopes the conflict would come to an end before the ceasefire clocks runs down, with Brent crude dropping over nine per cent on Friday to $90.3.
Oil stocks also plunged with BP falling seven per cent while Shell tumbled 5.2 per cent.
In contrast, travel stocks surged, with Easyjet rising 8.1 per cent to 401.9p, while Wizz Air rocketed 10.1 per cent.
