Iran warns US of costly conflict, eyes Strait of Hormuz tensions

A senior Iranian lawmaker stated on Tuesday that a renewed conflict with Iran would be costly for the United States, asserting that Washington’s goals have shifted toward reopening the Strait of Hormuz. This statement comes amid ongoing tensions following the 2026 U.S.-Israeli air war on Iran, which led to a fragile ceasefire. The Strait of Hormuz, a strategic maritime chokepoint vital for global oil and LNG flows, remains a focal point of contention, with both sides implementing blockades. Markets appear to interpret the lawmaker’s comments as a sign of heightened tensions, potentially complicating U.S.-Iran deal prospects. Key Takeaways The Iranian lawmaker’s statement appears to suggest increased geopolitical tensions, which could impact negotiations between the U.S. and Iran. Market pricing suggests a decrease in the likelihood of a U.S.-Iran deal including reconstruction funding, now priced at 11.5% YES. The Strait of Hormuz remains a key area of contention, with potential implications for global energy markets and diplomatic efforts. What to Watch Observers will be monitoring any developments related to the Strait of Hormuz, as further escalation could indicate complications ...