Just now, the entire market surged! Oil prices plummeted! The Strait of Hormuz, big news!

【Introduction】New developments have occurred in the Strait of Hormuz

China Fund News Reporter: Taylor

The Middle East situation has once again become unpredictable!

On the evening of March 16, market sentiment was once again reversed.

International oil prices erased their intraday gains and turned downward.

Meanwhile, European and American stock markets surged across the board. The Nasdaq index rose about 1% pre-market.

In terms of news, there have been new developments in the Strait of Hormuz.

The main reason for the market’s recovery is that there is hope that more oil tankers may resume passing through the Strait of Hormuz. Currently, all parties are still negotiating to ensure the safety of this critical shipping route.

U.S. President Trump is pressuring countries to jointly promote the reopening of this key oil transportation corridor and has stated that the U.S. is communicating with Iran. NATO also said that some member countries are discussing security issues in the Strait of Hormuz with the U.S. and others.

Although attacks on oil facilities continue, keeping crude oil prices well above $100 per barrel, prices have fallen about $4 from earlier highs today. After two oil tankers successfully passed over the weekend, India is trying to let another six tankers transit; at the same time, several countries are communicating with Iran through “back channels” to ensure their own tankers can pass safely.

Additionally, reports indicate that U.S. officials have said that the Trump administration may announce as early as this week that multiple countries have agreed to form a coalition to escort ships passing through the Strait of Hormuz. However, discussions are still ongoing about whether these escort operations will be launched before the conflict ends or after it concludes. Officials say the final arrangements may change depending on the battlefield situation.

On the public front, many countries remain cautious about participating in such escort operations. Given the ongoing hostilities and high risks, most countries have not made clear statements about involvement.

UK Prime Minister Rishi Sunak called for a “rapid resolution” to the Iran conflict and said the UK is working with allies to develop a long-term plan to restore freedom of navigation in the Strait of Hormuz, including providing autonomous mine-sweeping technology. Sunak stated, “We are working with all allies, including our European partners, to develop a feasible collective plan to restore navigation freedom in the region as soon as possible and mitigate economic impacts.” He added that the UK already has unmanned boats capable of identifying and destroying mines and is discussing what support can be provided in counter-drone technology. Sunak also said, “We are not at the point of making decisions yet.”

Italy’s foreign minister said that diplomacy is the right approach to address the situation in the Strait of Hormuz.

A German government spokesperson stated that it is unclear whether the U.S. has formally requested assistance regarding the Strait of Hormuz.

German Defense Minister Pistorius said that Germany will not send troops to participate in security operations in the Strait of Hormuz.

Greek government officials stated that Greece has no plans to participate in military actions in the Strait of Hormuz.

Latest updates show that vessel tracking data indicate a tanker carrying non-Iranian crude oil has successfully passed through the Strait of Hormuz.

According to MarineTraffic, the Pakistan-controlled oil tanker “Karachi,” carrying crude oil from Abu Dhabi, has passed through the strait. Data shows that the tanker has now entered the Omani Gulf.

India’s shipping ministry announced on Monday that a vessel flying the Indian flag, carrying liquefied petroleum gas (LPG), is expected to arrive at the port later that day, with over 40,000 tons of fuel onboard. The department also said another ship plans to dock on Tuesday; both ships passed through the Strait of Hormuz on Saturday.

Iran’s top diplomat stated that the key route, the Strait of Hormuz, is only closed to U.S., Israeli, and their allies’ ships.

Iranian Foreign Minister Abbas Araghchi said, “From our perspective, this strait is open.” He added, “It is only closed to our enemies—those who unjustly attack our country—and their allies.”