Oil Prices Climb as Iran Set To Deploy Mines at Strait of Hormuz

Oil prices climbed, rising from intraday lows, on the back of reports that Iran is planning to deploy mines at the Strait of Hormuz. This move will further restrict the oil flows at this major chokepoint and comes just a day after U.S. President Donald Trump warned Iran about effectively closing the Strait.

Oil Prices Jump as Iran Moves To Restrict Strait Of Hormuz

TradingView data shows that Brent Crude Oil futures have climbed above $90 from a low of around $84. The oil benchmark has pared most of today’s losses and is down just around 2% after dropping to an intraday low of $82.

U.S. Oil prices also rose above $80 from an intraday low of $77, although still down over 11% on the day. The rise in these oil benchmarks followed a report by CBS Senior White House Correspondent Jennifer Jacobs that U.S. intelligence assets have begun to see indications that Iran is taking steps to deploy mines in the Strait of Hormuz shipping lane.

This development comes just a day after Trump drew a red line on the Strait of Hormuz, warning Iran that he will hit them with a military response “twenty times harder” if it tries to disrupt oil flows at this chokepoint. Oil prices notably fell back amid the threat, extending their decline after Trump said the Iran war could end soon.

Iran’s move to deploy mines in the Strait of Hormuz would further deter vessels from passing through, further restricting oil supply. Bloomberg data showed that Hormuz traffic is at a standstill, with only Iran-linked vessels currently passing through this chokepoint.

The Bitcoin price sharply retraced on the back of this report, falling below $70,000. TradingView data shows that the leading crypto is currently trading just below this psychological level, still up over 2% today.