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Iran shuts Hormuz in retaliation for Israel strikes on Lebanon; ceasefire on edge, oil price rises

Fresh strikes by Israel on Lebanon have emerged as a major destabilising factor.

Dhanam News Desk

Iran’s decision to shut the Strait of Hormuz again has cast fresh uncertainty over its fragile ceasefire with the United States, though analysts say a full return to war is not inevitable.

The truce, brokered earlier this week after intervention by Pakistan, had briefly allowed shipping to resume through the vital oil corridor. But the situation has turned volatile once more, with regional tensions spilling over.

Israel complicates ceasefire

Fresh strikes by Israel on Lebanon have emerged as a major destabilising factor. Tehran has cited these attacks as justification for halting maritime traffic again, arguing that ceasefire violations extend beyond bilateral commitments.

While Washington maintains that the agreement applies only between the US and Iran, Tehran has framed it as part of a broader regional de-escalation effort—an interpretation not shared by either the US or Israel.

Fragile truce, but no immediate war

Despite the renewed strain, analysts believe both sides still have incentives to avoid escalation. Iran’s acceptance of the ceasefire framework is seen as a strategic move to project restraint and retain diplomatic leverage, while the US has paused military action to allow negotiations to proceed.

Donald Trump has indicated that American forces will remain in the region until a more permanent agreement is reached, warning of a sharp military response if talks collapse.

At the same time, Iran has issued its own warning, with Foreign Minister Abbas Araghchi signalling that Washington cannot pursue a ceasefire while indirectly sustaining conflict through Israeli actions.

Risk of wider escalation

The biggest uncertainty remains Israel’s next move. Analysts warn that continued military action, particularly against in Lebanon, could trigger a broader chain reaction.

Such a scenario could pull Iran into direct confrontation with Israel, risking a fresh escalation cycle that may eventually draw the US back into active conflict.

Diplomatic efforts continue

Talks are set to continue in Islamabad, led by US Vice-President J. D. Vance, who is seen as a relatively cautious voice within the US administration.

Meanwhile, China has signalled its willingness to support de-escalation, alongside countries such as Russia, Pakistan and Turkey, as diplomatic channels remain active.

Oil markets on edge

The repeated disruption in Hormuz—through which a significant share of global oil passes—has kept energy markets on tenterhooks. Any prolonged closure could push oil prices higher again, complicating inflation and growth outlooks worldwide.

For now, the ceasefire holds—but with multiple actors involved and conflicting objectives, the path ahead remains uncertain.

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