Oil Markets Remain Steady as Iran Temporarily Closes Strait of Hormuz During Nuclear Talks

Tehran, Tuesday, 17 February 2026.
On Tuesday, February 17, the Islamic Revolutionary Guard Corps (IRGC) initiated live-fire naval drills in the Strait of Hormuz, resulting in the temporary closure of this vital global oil artery. This strategic military posturing occurs precisely as indirect nuclear negotiations between the United States and Iran resume in Geneva, highlighting a tense interplay between diplomacy and military brinkmanship. Despite the disruption to a waterway responsible for one-third of seaborne crude exports, global oil markets have exhibited surprising stability, with prices fluctuating only slightly. This measured market response suggests investors currently interpret the drills as a calculated negotiation tactic rather than an immediate precursor to conflict. However, with the IRGC testing weapons described as distinct from their wartime arsenal, the geopolitical risk premium remains a critical factor for energy investors to monitor closely.