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- Report – US forces down Iranian drones going for strikes on Hormuz shipping
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Summary
- Trump cancelled planned Thursday strikes on Iran, citing a near-complete deal with a possible weekend signing in Europe
- Iran disputed claims of a finalised agreement, with the Supreme Leader’s approval reportedly still outstanding
- Iranian forces blocked a tanker attempting to transit the Strait of Hormuz without coordination, with explosions reported near Sirik
- US forces shot down two Iranian drones near Hormuz after an attempted strike on commercial shipping
- Oil prices remain subdued, USD ticks higher, regional equities rally led by Japan
Asian markets staged a broad rally on Friday even as the situation around the Strait of Hormuz remained fluid, with diplomatic optimism around a potential US-Iran deal offset by continued flare-ups on the water.
President Trump cancelled planned US strikes on Iran scheduled for Thursday night, saying a deal had been largely agreed and could be signed as early as this weekend in Europe. However, Iranian officials disputed claims that a final agreement had been reached, with reports suggesting approval from the Supreme Leader remains outstanding.
Adding to the uncertainty, Iranian forces blocked a tanker attempting to transit the Strait of Hormuz without prior coordination, with the vessel complying after warnings from the IRGC Navy. Explosions were also reported near the coastal town of Sirik in connection with the incident. Separately, US forces shot down two Iranian one-way attack drones near the strait after Iran attempted to strike commercial vessels transiting the waterway.
Despite these tensions, oil prices remained subdued, having reversed sharply lower on Thursday after the cancelled strikes removed a chunk of the geopolitical risk premium that had built up over recent sessions. The US dollar saw a modest bounce, clawing back some of Thursday’s broad-based weakness.
Regional equities, meanwhile, extended Thursday’s risk-on tone with solid gains across the board. Japan’s Nikkei led the advance, up around 4%, while Hong Kong’s Hang Seng rose 1.7% and the Shanghai Composite gained 1.6%.
The combination of a diplomatically framed de-escalation alongside ongoing military activity around Hormuz leaves markets in something of a holding pattern, pricing in optimism on the deal front while remaining alert to the practical situation on the water, where Iran’s actions continue to diverge from the narrative of an imminent, comprehensive resolution.
This article was written by Eamonn Sheridan at investinglive.com.
