On Friday, Iran launched drones targeting ships in the Strait of Hormuz, striking the upper deck of a large cargo vessel. This action represents a breach of the existing ceasefire agreement, escalating tensions in the strategically critical waterway.
US President Donald Trump highlighted the incident on Truth Social, condemning Iran's drone attacks and emphasizing the violation of peace efforts in the region, according to FX Street.
The Strait of Hormuz is a vital chokepoint for global oil shipments, and any instability there can have significant repercussions for international markets, including Japan’s energy imports and risk sentiment in FX and equities.