Iran conducted live-fire missile drills resulting in a temporary shutdown of the Strait of Hormuz, a vital chokepoint carrying 20% of the world’s oil. Supreme Leader Ayatollah Khamenei warned that the strongest armies could be 'slapped' into submission, heightening geopolitical tensions in the region.

Global benchmarks responded to the supply concern, with Brent crude rising 0.31% to $67.63 per barrel and West Texas Intermediate climbing 0.22% to $62.40. Both benchmarks remain near two-week lows as markets weigh drill-related disruptions against ongoing nuclear dialogue optimism.

Tanker operator Frontline PLC has been placed on high alert as maritime experts warn that any military escalation could force route diversions, increase insurance premiums and delay cargoes. Near-term disruptions may impact Frontline’s vessel utilization rates and charter revenues if drills extend or provoke retaliatory actions.