Iran reversed course today and reimposed strict control over the Strait of Hormuz, just 24 hours after declaring it fully open for commercial shipping. The Iranian Armed Forces spokesperson said the waterway is back under military management, accusing the US of "piracy and maritime robbery" through its continued naval blockade. Several oil tankers that tried to transit yesterday were seen turning around on ship tracking data. The opening lasted less than a day.
Oil had already crashed 11% on Friday's announcement, with WTI hitting $83.85. Now prices are bouncing back toward $93. Markets got whiplashed and traders who sold on the "opening" headline are scrambling. This is what happens when you trade geopolitics on trust.