The Islamic Revolutionary Guard Corps (IRGC) conducted live-fire military exercises dubbed "Smart Control," resulting in a partial closure of the Strait of Hormuz for several hours. Iranian semi-official media attributed the temporary closure to "security precautions" necessary for the drills in the world's most critical oil transit chokepoint. These maneuvers coincided with the start of indirect nuclear negotiations between Iran and the United States in Geneva. Analysts suggest the exercises serve as a strategic signal to strengthen Tehran's leverage during the diplomatic talks by demonstrating control over global energy flows. Oil markets reacted with caution, as Brent Crude and WTI prices remain highly sensitive to any risks involving maritime security. Investors are closely monitoring the outcomes of the Geneva discussions for their potential impact on regional stability and global crude supplies.
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