US Defense Chief Says Iran Maritime Blockade Remains in Place, Military Ready if Talks Fail
Summary
- The US defense chief said the country is maintaining its maritime blockade on Iran and remains ready to resume military intervention if negotiations break down.
- Markets are closely watching US-Iran talks and transit through the Strait of Hormuz for their potential impact on international oil prices and gold.
- The outcome of US-Iran negotiations and the Strait of Hormuz transit issue could affect volatility in global financial markets, including oil prices and gold.
Forecast Trend Report by Period
US Defense Secretary Pete Hegseth said the maritime blockade on Iran remains in place and that Washington is prepared to resume military intervention if negotiations collapse. Markets are watching US-Iran talks and developments in the Strait of Hormuz.
BBC reported on May 30 that Hegseth made the remarks to reporters after the Shangri-La Dialogue, an Asian security conference in Singapore.
"The blockade operation against Iran remains ironclad," he said.
Hegseth also said the Strait of Hormuz was mentioned frequently in bilateral meetings held during the conference. He stressed that the waterway would remain a toll-free strait open to free passage for the world.
On the operation of US military bases in the Middle East, Hegseth said all decisions would be made by President Donald Trump. The current focus, he added, is on maintaining readiness to reengage militarily if needed.
The US and Iran have recently continued negotiations over extending a ceasefire, resuming nuclear talks and normalizing transit through the Strait of Hormuz. Major differences remain over control of the strait, uranium enrichment and the scope of sanctions relief.
Markets are assessing whether the outcome of US-Iran negotiations and passage through the Strait of Hormuz could drive volatility in global financial markets, including oil and gold prices.
