Key insights
- The US Defense Secretary stated the US blockade on Iran is expanding globally, with the US Navy controlling passage through the Strait of Hormuz. This could lead to increased geopolitical tensions and potentially disrupt global oil supply, creating downward pressure on US equities due to increased uncertainty and potential for higher energy prices.
WASHINGTON, April 24 (Reuters) - Defense Secretary Pete Hegseth said on Friday that the U.S. blockade on Iran is going global, adding Tehran had a chance to make a "good deal" with Washington.
"Our blockade is growing and going global," Hegseth told reporters.
"No one sails from the Strait of Hormuz to anywhere in the world without the permission of the United States Navy," he said.
Thirty-four ships had been turned around from the Strait of Hormuz by the U.S. Navy so far, he said.
(Reporting by Phil Stewart, writing by Bhargav AcharyaEditing by Tomasz Janowski and Michelle Nichols)