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Tensions have escalated sharply between the United States and Iran in and around the Strait of Hormuz, a vital waterway for global oil shipments. Reports indicate that both sides have exchanged fire, with Iran claiming it repelled a US push and hit warships after they ignored warnings. The US military, meanwhile, accompanied a commercial carrier through the strait and denied that Iran struck any US Navy ship.
Oil prices initially rose on the flare-up but later eased as signs emerged that the US was loosening the Iranian closure of the strait. President Donald Trump warned that if Iran attacks any American ship near the strait, it will be "wiped off the face of the earth." Iran, in turn, demanded the US abandon its "excessive demands" and warned ships about navigation in the area. Most shipping in the strait has reportedly come to a standstill despite a US pledge to keep it open.
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