Iran blocks the Strait of Hormuz: the fragile truce has collapsed, markets hold their breath in anticipation
June 20, 2026. The Khatam al-Anbiya Central Command — Iran's highest joint headquarters — announced the closure of the Strait of Hormuz to shipping. The official reason: violations of the Islamabad memorandum by the United States and Israel.
This decision came as a shock to global energy markets, which just days earlier had been celebrating a de-escalation. The closure of the strait directly undermines recent diplomatic efforts to reduce tensions and once again creates existential risks for global oil transit. Markets that had priced in relief are now forced to revise their forecasts.
Statement from the Military Command
The Khatam al-Anbiya Central Command described the closure as a "first step" and warned of further measures if aggression continues. The information was instantly disseminated by all Iranian state media. The conflict, which began with U.S. and Israeli strikes in late February 2026 and subsequent restrictions on passage through the strait, has entered a new, more acute phase.
Approximately 21 million barrels of oil and petroleum products are transported through the Strait of Hormuz daily — roughly 20% of global liquid hydrocarbon consumption and a quarter of all seaborne oil trade. In addition to oil, major export shipments of liquefied natural gas from Qatar and the UAE pass through the strait. Alternative routes for Gulf countries are virtually nonexistent, making any disruption here critical for global energy security.
Disagreements over the Islamabad Memorandum
The 14-point Islamabad memorandum, agreed upon around June 17, 2026, stipulated that Iran would make maximum efforts to ensure the safe and free passage of commercial vessels during the first 60 days. The plan also included the lifting of the U.S. naval blockade of Iranian ports. Shipping began to recover, helping to lower energy prices.
The new statement from the Iranian army effectively nullifies these agreements. Tehran views Israel's ongoing actions in Lebanon as a direct violation of the memorandum.
It is important to note that there is no official confirmation of the strait's closure from the American side yet. U.S. Vice President JD Vance suggests the opposite, creating information chaos and adding volatility.
Expert opinion: The situation around the Strait of Hormuz is a classic example of "escalation play" in geopolitical tension. Markets accustomed to quick deals are now facing a reality where diplomatic memoranda can be annulled by a single statement. For cryptocurrencies, this means renewed demand for safe-haven assets and increased volatility, especially amid uncertainty over energy supplies that directly impact mining costs.