strait of hormuz news for traders

The Strait of Hormuz is a narrow waterway between the shores of Iran , UAE and Jordan.

Although Iran did not create the Strait of Hormuz artificially (it is not like the Suez Canal), International Law allows Iran claim control of the Strait because of its proximity to Iranian shores.

the Strait of Hormuz is around 330 feet deep which is good for cargo ships carrying oil from major oil producers in the Persian Gulf. The Strait of Hormuz is the shortest means of transporting oil to the Indian ocean.

U.S. President Donald Trump is trying to get countries to form a security force to stop Iran from attacking Oil Vessels passing through the Strait of Hormuz.

This is President Trumps Truth Social Post informing the public that other countries will join forces to secure the Strait of Hormuz.

Trump Bombs Iran's Kharg Island

Over the weekend, US President Donald Trump announced on his Truth Social handle, that the US military had attacked and bombed Kharg Island in Iran.

What is Kharg Island?

To give you some context, even though Iran is sabotaging oil shipment through the Hormus Strait, it is actively selling oil to Russia etc. in order to fund it war against the USA. The Kharg Island is where its oil loading terminals are situated. Iranian oil is stored on Kharg Island and shipping vessels come there to load oil for onward sale.

Khard Island remains the Iran's main gateway to global energy markets.

I’m well positioned here to learn 😎

Oil prices will definitely rise again, but this is a necessary move to handicap Iran's ability to fund its war. Other countries need to stop sitting on the fence and wrap this war up asap. The UK especially should get involved.

Why Other Countries Are Reluctant To Join Forces with the US to Protect Hormus Strait

1. No Appetite For War

Europe is already feeling the effect of the Russia-Ukraine war and most European allies are not ready to witness another war. Most European countries/allies would rather spend their resources fighting Russia to liberate Ukraine.

2. No Insurance Company Wants To Insure Oil Vessels Passing Through The Gulf

The lack of insurance coverage, means any losses during war will not be reimbursed. This means the countries will fully bear any losses inflicted on them during the war.

3. Even If Oiil-Laden Ships Move In a Convoy Their Speed Will be Limited

Some experts have suggested oil-carrying ships move in a convoy which would be escorted by allied forces miliitary but not all ships have the same speed capacity. This means the convoy speed will depend on the speed of the slowest ship.

4. Mined Waters & Signal Jammers

Iran has planted mines/bombs in the waters of the Hormus Strait making it very dangerous for oil-vessels. Iran is also actively jamming electronic signals that these ships need to navigate speedily and successfully.

EU Foreign Ministers Refuse To Send Navy Into Strait of Hormuz

I just came across this news bite from Euro News where Foreign Ministers from EU nations met to discuss the possibility in interverning and joining forces with President Trump to police the Strait of Hormuz waterways.

Kaja Kallas the EU High Representative for Foreign Affairs and Security Policy spoke on behalf of the bloc "Nobody wants to go actively in this war". She also said the EU has operation Aspides which is a Navy operation to protect EU waterways but that they have decided not to send their Navy into the Strait of Hormuz.

Trump Confirms NATO Wont Help Secure Strait of Hormuz

US President Donald J trump has confirmed via his Truth Social handle that NATO have refused to come to the aid of the UNited States in securing the Strait of Hormuz. He criticized NATO for doing nothing for the USA despite receiving funding from them. HE enede by saying the US no longer needs the help of NATO. Trump has also said he is considering pulling the US out of NATO.

US President Donald Trump on Sunday gave Iran a 2-day ultimatum to completely open up the Strait of Hormuz failing which the US military will be instructed to blow up their power plants. The ultimatum expires today and has caused panic in the markets and this could cause the USD to strengthen today due to the petro-dollar trade and investors running to it for safe haven.

Trump Suspends Iran Power Plant Strikes

US President Donald Trump has said he has ordered the US military to suspend the planned strikes on Iranian power plants, because both countries have had fruitful talks.

But I wonder why Iran is denying that they are in talks, this kind of denial will make oil price climb above $100 again.

Guys, did you see this post on Trump's TS handle? He says the US now produces more oil than Saudi!

Trump Vows To Bomb Iran on Tuesday 7/4/2026

US President Donald Trump has vowed that the US military will bomb Iran power infrastructure & bridges on Tuesday by 8 pm Eastern Time, if they do not open up the Strait of Hormuz.

In a related development, the US was able to rescue alive, its fighter jet pilot, that was shot down in Iran.

I learnt Iran and their neighbor Oman, are meeting to try and resolve the issue before Tuesday. If they reach a resolution, Trump will definitely announce it today and it will send markets in a frenzy.

Yeah but still no outcome, the deadline is today by midnight

If he does that it would really affect the market

Bomb blasts heard over Iran's Kharg island

Iran Agrees To Ceasefire, Strait of Hormuz to be Reopened

President Trump has announced via his Truth Social handle that Iran has made a deal with the US and agreed to reopen the Strait of Hormuz