US ends Iran's ability to close Strait of Hormuz

What happened: President Trump declared the U.S. is "taking over" the Strait of Hormuz amid Iran tensions. Since then, the U.S. has ended Iran's ability to close the strait, with Energy Secretary Chris Wright confirming this at a New York conference on July 21. Meanwhile, Oman has agreed with the UK and France to ensure safety in its territorial waters, and Saudi Arabia has increased oil shipments through the strait since the U.S.-Iran deal on June 17.

Market impact: Oil prices soared 3.2% on July 20 following Trump's statement, as the strait is a crucial energy route. This impacts energy companies and countries heavily reliant on oil exports, such as Saudi Arabia and Iran. Dubai's new east coast port also signals a potential reduction in Iran's leverage over the strait, further affecting regional geopolitics and energy dynamics.

What to watch next: On August 3, the U.S. and Iran are set to review their nuclear deal, which could influence tensions in the region. Additionally, on August 15, the U.S. Energy Information Administration will release its Short-Term Energy Outlook, providing insights into global energy markets and the potential impact of Hormuz developments.