Iran's President Masoud Pezeshkian declared on Wednesday that Iran will not permit freedom of navigation through the strategically vital Strait of Hormuz as long as US sanctions and blockades remain enforced, according to FX Street.
The Strait of Hormuz is a crucial maritime chokepoint for global oil shipments, and this statement heightens geopolitical tensions between Iran and the US. The ongoing sanctions and blockade have prompted Tehran to take a firm stance on controlling passage through the waterway.
For Japanese markets, which heavily depend on stable energy supplies from the Middle East, such developments could increase volatility in oil prices and impact FX and equity markets sensitive to geopolitical risks.