{"id":66485,"date":"2026-08-13T15:38:16","date_gmt":"2026-08-13T19:38:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-energy-and-geopolitical-tensions-flare-as-strait-of-hormuz-closes\/66485\/"},"modified":"2026-08-13T15:38:16","modified_gmt":"2026-08-13T19:38:16","slug":"global-energy-and-geopolitical-tensions-flare-as-strait-of-hormuz-closes","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-energy-and-geopolitical-tensions-flare-as-strait-of-hormuz-closes\/66485\/","title":{"rendered":"Global Energy and Geopolitical Tensions Flare as Strait of Hormuz Closes"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-energy-and-geopolitical-tensions-flare-as-strait-of-hormuz-closes\/66485\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-energy-and-geopolitical-tensions-flare-as-strait-of-hormuz-closes\/66485\/#Middle_East_Crisis_Strait_of_Hormuz_Blocked\" >Middle East Crisis: Strait of Hormuz Blocked<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-energy-and-geopolitical-tensions-flare-as-strait-of-hormuz-closes\/66485\/#Energy_BP_and_ADNOC_Expand_into_Venezuela\" >Energy: BP and ADNOC Expand into Venezuela<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-energy-and-geopolitical-tensions-flare-as-strait-of-hormuz-closes\/66485\/#Diplomacy_Japan_Protests_Putins_Island_Visit\" >Diplomacy: Japan Protests Putin\u2019s Island Visit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-energy-and-geopolitical-tensions-flare-as-strait-of-hormuz-closes\/66485\/#Finance_Record_Inflows_and_Fed_Operations\" >Finance: Record Inflows and Fed Operations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-energy-and-geopolitical-tensions-flare-as-strait-of-hormuz-closes\/66485\/#Trade_Trump_Administration_Wins_Tariff_Ruling\" >Trade: Trump Administration Wins Tariff Ruling<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Iran\u2019s IRGC has officially closed the Strait of Hormuz<\/strong>, a critical maritime chokepoint, following an escalation in regional conflict, threatening 25% of global seaborne oil trade.<\/li>\n<li><strong>BP (<a href=\"\/stock\/BP\">BP<\/a>) and ADNOC\u2019s XRG<\/strong> have secured a major exploration and production license in <strong>Venezuela\u2019s Loran gas field<\/strong>, marking a significant return of international majors to the region.<\/li>\n<li><strong>Japan-Russia relations have hit a new low<\/strong> as Prime Minister Sanae Takaichi condemned President Vladimir Putin\u2019s &quot;absolutely unacceptable&quot; visit to the disputed Etorofu island.<\/li>\n<li><strong>U.S. Money-Market Fund assets reached a record $7.93 trillion<\/strong>, driven by a flight to safety amid heightening geopolitical instability.<\/li>\n<li><strong>A U.S. court has ruled that the Trump administration can halt tariff exemptions<\/strong> for low-cost goods, signaling a further tightening of trade policy.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Middle_East_Crisis_Strait_of_Hormuz_Blocked\"><\/span>Middle East Crisis: Strait of Hormuz Blocked<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>Iranian Revolutionary Guard Corps (IRGC)<\/strong> Navy Commander announced on Thursday that the <strong>Strait of Hormuz is closed<\/strong>, significantly escalating the ongoing regional conflict. This move follows months of maritime tension and effectively blocks a waterway responsible for nearly <strong>one-fifth of the world\u2019s liquefied natural gas (LNG)<\/strong> and <strong>25% of global oil trade<\/strong>.<\/p>\n<p>The closure has triggered immediate concern across global energy markets, as the <strong>U.S. Navy<\/strong> continues to enforce its own &quot;wall of steel&quot; blockade against Iranian ports. While President Trump has claimed &quot;total control&quot; over the waterway, the IRGC\u2019s declaration and the presence of sea mines have brought commercial transit to a virtual standstill, with only a handful of vessels successfully navigating the passage in recent days.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Energy_BP_and_ADNOC_Expand_into_Venezuela\"><\/span>Energy: BP and ADNOC Expand into Venezuela<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a landmark shift for the Latin American energy sector, <strong>BP (<a href=\"\/stock\/BP\">BP<\/a>)<\/strong> has been awarded an exploration and production license for <strong>Phase 2 of the Loran field<\/strong> in the Plataforma Deltana area. The project will be operated by <strong>BP (<a href=\"\/stock\/BP\">BP<\/a>)<\/strong> in partnership with <strong>XRG<\/strong> (the international investment arm of <strong>ADNOC<\/strong>), and <strong>UCC Oil &amp; Gas Holding<\/strong>, with each party holding an equal working interest share.<\/p>\n<p>The <strong>Loran field<\/strong> is part of a massive cross-border gas accumulation shared with Trinidad and Tobago, estimated to hold over <strong>7 trillion cubic feet (Tcf)<\/strong> of proven gas resources. This deal signals a robust re-entry of Western and Middle Eastern energy giants into Venezuela following the establishment of a new interim government and the subsequent easing of investment barriers.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Diplomacy_Japan_Protests_Putins_Island_Visit\"><\/span>Diplomacy: Japan Protests Putin\u2019s Island Visit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Japanese Prime Minister <strong>Sanae Takaichi<\/strong> issued a scathing rebuke of Russia following President Vladimir Putin\u2019s visit to <strong>Etorofu<\/strong>, one of four islands in the disputed Northern Territories. Takaichi stated that the visit is <strong>&quot;incompatible with Japan&#39;s consistent position&quot;<\/strong> and has &quot;further hardened anti-Russian sentiment&quot; within the country.<\/p>\n<p>The Prime Minister emphasized that the islands are inherently part of Japan under international law and that the visit makes the restoration of bilateral relations over the medium to long term significantly more difficult. The diplomatic rift comes at a sensitive time as Japan marks the anniversary of the end of World War II, further straining ties already damaged by Russia\u2019s invasion of Ukraine.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Finance_Record_Inflows_and_Fed_Operations\"><\/span>Finance: Record Inflows and Fed Operations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>U.S. <strong>Money-Market Fund assets<\/strong> surged to a new high of <strong>$7.93 trillion<\/strong> for the week ended August 12, according to the <strong>Investment Company Institute (ICI)<\/strong>. The <strong>$18.26 billion weekly increase<\/strong> was dominated by government funds, reflecting investor preference for liquid, low-risk assets as global tensions mount.<\/p>\n<p>Simultaneously, the <strong>New York Fed<\/strong> announced that its Open Market Trading Desk plans to conduct approximately <strong>$17 billion in reinvestment purchases<\/strong> between August 14 and September 14. Notably, the Fed will conduct <strong>no reserve management purchases<\/strong> during this period, focusing instead on maintaining the current ample level of reserves by reinvesting principal payments from agency securities into Treasury bills.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Trade_Trump_Administration_Wins_Tariff_Ruling\"><\/span>Trade: Trump Administration Wins Tariff Ruling<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a significant victory for the administration\u2019s &quot;America First&quot; trade agenda, a court has ruled that <strong>President Trump can halt tariff exemptions for low-cost goods<\/strong>. This ruling targets the &quot;de minimis&quot; loophole that previously allowed small-value shipments\u2014often from e-commerce giants\u2014to enter the U.S. duty-free.<\/p>\n<p>The decision is expected to impact a wide array of consumer goods and is part of a broader strategy to leverage tariffs as a tool of national security and economic policy. Analysts suggest this could lead to increased costs for retailers and consumers, even as the administration argues it is necessary to protect domestic industries from unfair foreign competition.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Iran\u2019s IRGC has officially closed the Strait of Hormuz, a critical maritime chokepoint, following an escalation in regional 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