The statement comes amid heightened tensions in the region, where concerns over energy security and shipping routes have already rattled global markets.

The United States has begun its naval blockade of the Strait of Hormuz, according to a US official, as President Donald Trump warned of possible military action against Iranian vessels and Tehran

Oil prices fell sharply and global stock markets surged after Iran announced that the Strait of Hormuz would remain open during ceasefire. The move eased fears of supply disruptions, bringing oil below $90 per barrel.

It is too soon to identify potential second-round effects in inflation or labor markets,” cautioned UBS’s Paul Donovan.

Interior Secretary Doug Burgum revealed that Iran could have hit Washington, D.C., and other U.S. cities through proxies in Venezuela had the Trump administration not intervened.

Radio calls show U.S. forces warning vessels in the Gulf of Oman to stop heading to Iran or face interception as the blockade is enforced.

The 10-year Treasury yield fell, so too did eurozone government bonds, after Iran said the Strait of Hormuz was open.

Kharg Island offers a way to squeeze Iran’s economy. A ground invasion offers the possibility of a decisive force at extraordinary cost. Targeted operations against nuclear equipment offer a narrower path, but one with high operational risk and no guarantee of finality.