Iran must be ready to negotiate, German FM says in talks with counterpart

Brent crude jumped more than 5% on Monday while the dollar strengthened after Iran said it had prevented a US warship from entering the Strait of Hormuz, Reuters reported.

US stock futures, European equities and bond prices fell as investors reacted to rising tensions in the strategic waterway.

The move followed conflicting reports of military activity in the area, which heightened concerns over global energy supply through the strait, a key oil transit route.

Iran has prepared additional scenarios in the Strait of Hormuz, IRGC-affiliated Tasnim News reported on Monday, citing an unnamed military source.

The source said Iran was ready for “any scenario” and would not allow US combat vessels to pass through the strait without permission from Iran’s armed forces.

“All vessels must learn from the experience of the 40-day war and not pay the price for American foolishness,” the source was quoted as saying.

Iran fired a warning shot at a US warship to prevent it from entering the Strait of Hormuz, Reuters reported on Monday, citing a senior Iranian official.

It was unclear whether any damage occurred following the shot, according to the report.

The claim follows conflicting reports earlier in the day, with Islamic Revolutionary Guards saying a US ship had been hit by missiles and the US Central Command saying no Navy vessels were struck.

The United Arab Emirates condemned on Monday a drone attack on an ADNOC-affiliated vessel in the Strait of Hormuz, calling it an act of piracy by Iran’s Islamic Revolutionary Guards.

The UAE Foreign Ministry said targeting commercial shipping and using the Strait of Hormuz as a pressure tool violated freedom of navigation and UN Security Council resolutions.

The ministry said the vessel was targeted by two drones while transiting the strategic waterway.

No US Navy ship was hit by Iranian missiles on Monday, US Central Command said, denying Iranian reports that Islamic Revolutionary Guards had struck a US warship.

CENTCOM said US forces were supporting Project Freedom and enforcing a naval blockade on Iranian ports.