Oil prices rose after peace talks aimed at ending the Iran war broke down, leaving the Strait of Hormuz effectively closed for a third straight month. The strait is the world's most critical oil shipping lane, carrying roughly 20% of global oil supply, and its continued closure has kept energy markets under pressure. With no talks on the immediate horizon, traders are pricing in a longer disruption than many had expected. Supply routed through alternative paths costs more and moves slower, pushing up prices for buyers across Asia and Europe. The longer the strait stays shut, the harder it becomes for oil-dependent economies to absorb the cost. Watch for central banks and governments in import-heavy nations, including India, to respond with policy moves on fuel subsidies or currency management as prices stay elevated.
Iran's Revolutionary Guards have warned that oil tankers crossing the Strait of Hormuz without authorisation risk being stopped, even as one tanker proceeded through the waterway. The threat could push up war-risk insurance premiums and crude prices, with major importers like India directly exposed.
Iran and the US traded fresh strikes over the Strait of Hormuz, with Tehran hitting US bases in Bahrain and Kuwait and Washington striking Iranian sites near Sirik. The exchanges threaten to collapse a Pakistan-brokered ceasefire signed June 18, with global oil markets exposed to renewed Hormuz disruption.
Iran's IRGC struck US military facilities in Kuwait and Bahrain on Sunday for a third straight day, while Trump threatened Iran would "no longer exist" if the US resumes full war.
Venezuela's earthquake death toll has reached 1,430 with the US Geological Survey warning fatalities could top 10,000, placing it among Latin America's deadliest in a century. US military planes are landing in Caracas, Washington is mobilising $150 million in aid, and rescue teams from 17 countries are on the ground.
