Tensions in the Persian Gulf are rising after Iran announced a multi-day naval exercise in the Strait of Hormuz, a critical global energy chokepoint. The announcement prompted a sharp response from the United States, raising concerns about regional stability and oil market disruptions.
Iran Announces Five-Day Naval Exercise
Iranian authorities confirmed that live-fire naval drills will begin on February 1, 2026, and run for five days in and around the Strait of Hormuz. The narrow waterway handles a significant share of the world’s oil shipments, making any military activity there closely watched by global markets.
Iran has warned commercial vessels transiting the area to exercise caution during the drills, which will include active weapons testing and naval maneuvers.
US Issues “Zero Tolerance” Warning
In response, the United States Fifth Fleet issued a warning stating it would maintain zero tolerance for unsafe or unprofessional conduct in international waters. US officials emphasized that freedom of navigation remains a priority and that any threat to shipping would be addressed immediately.
The drills come amid internal unrest in Iran, including weeks of anti-inflation protests, and escalating rhetoric from Washington. The convergence of domestic pressure and external threats has heightened geopolitical risk.
Gold Likely to React When Markets Open Monday
Gold is expected to come under renewed focus when markets reopen on Monday. Heightened Middle East tensions typically support demand for traditional safe-haven assets, and any sustained escalation around the Strait of Hormuz could drive buying interest. Investors will be watching early trading closely for signs of renewed momentum in precious metals.
Energy markets are now closely monitoring developments, as any disruption in the Strait of Hormuz could have immediate global consequences.
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