US Treasury Secretary Latest Statement! Iran Outlines Strait of Hormuz Passage Principles

The Middle East situation continues to stir up global financial markets.

On the morning of March 23, the cryptocurrency market plummeted across the board, with Bitcoin dropping over 3% and Ethereum falling more than 4%. According to CoinGlass data, in the past 24 hours, a total of 204,842 traders were liquidated worldwide, with total liquidation amounts reaching $554 million (about 3.8 billion RMB). US stock index futures and major European indices also declined collectively. Analysts point out that recent threats from U.S. President Trump have heightened market concerns over escalating tensions.

Regarding the Middle East situation, according to the latest news from Xinhua, Iran’s Islamic Parliament Speaker Ali Larijani stated that, besides U.S. military bases, financial institutions that support U.S. military expenses are also “legitimate targets” for Iran’s retaliation, calling this a “final warning.” Meanwhile, U.S. Secretary of the Treasury Janet Yellen announced that a military operation is underway to gradually weaken Iran’s defenses along the Strait of Hormuz using military force. This operation will continue until these facilities are completely destroyed.

On March 22, Iran’s Ministry of Foreign Affairs issued a statement saying that the Strait of Hormuz has not been blocked. Ships can still navigate through the waterway under the necessary measures taken due to the war situation. The statement also outlined Iran’s principles regarding shipping and navigation safety in the Strait of Hormuz.

Full Market Crash

On the morning of March 23, Beijing time, during the Asia-Pacific early trading session, all three major U.S. stock index futures declined. As of 06:30, Dow Jones futures fell 0.34%, S&P 500 futures dropped 0.4%, and Nasdaq 100 futures declined 0.44%.

European major index futures also fell sharply, with Germany’s DAX30 futures and the UK’s FTSE 100 futures down over 2%, and France’s CAC40 futures down more than 1%.

The cryptocurrency market also experienced a broad decline, with Bitcoin dropping over 3%, Ethereum and HYPE falling more than 4%, and SOL, XRP, and Dogecoin dropping over 3%.

International oil prices initially surged but quickly fell back, turning downward. As of 06:30, WTI crude oil was down 1.06% at $97.26 per barrel; Brent crude oil fell 0.69% to $105.66 per barrel.

On the news front, U.S. President Trump threatened on Saturday that if Tehran does not fully reopen the Strait of Hormuz within 48 hours, the U.S. will “destroy” Iran’s power plants. This statement marked a significant escalation from his previous remarks about “gradually ending the war.” The current conflict has entered its fourth week, and the Strait of Hormuz remains nearly closed. The strait accounts for about 20% of global oil and natural gas transportation, and its paralysis has caused serious energy supply shocks.

Iran responded with four measures to Trump’s threats, including fully closing the Strait of Hormuz, attacking all Israeli power plants, energy, and information technology facilities, completely destroying U.S.-owned companies in the Middle East, and targeting power plants in Middle Eastern countries hosting U.S. military bases.

Analysts note that Trump’s threats are akin to placing a 48-hour countdown “time bomb” of uncertainty in the market.

Energy consultancy firm Energy Aspects founder Amrita Sen said, “This clearly indicates further escalation, which will likely push oil prices higher. However, some mistakenly believe Iran will back down.” She pointed out, “Trump is trying to demonstrate his ability to escalate conflicts, but this path could lead to severe damage to Gulf region infrastructure.”

Iran’s Major Warning

On the early morning of March 23, according to Xinhua, Iran’s Tasnim News Agency reported that on March 22, Iran’s Islamic Parliament Speaker Ali Larijani posted on social media that, besides U.S. military bases, financial institutions supporting U.S. military expenses are also “legitimate targets” for Iran’s retaliation.

Larijani said Iran is monitoring the flow of relevant financial assets and called this a “final warning.”

According to Xinhua, Iran’s Ministry of Foreign Affairs issued a statement on March 22, stating that the Strait of Hormuz has not been blocked. Ships can still navigate through the waterway under the necessary measures taken due to the war situation. The statement also outlined Iran’s principles regarding shipping and navigation safety in the Strait of Hormuz.

The Iranian Foreign Ministry’s statement said that after the U.S. and Israel launched military aggression against Iran, the situation in the Persian Gulf and the Strait of Hormuz has become dangerous, directly affecting regional shipping and navigation safety. To exercise its legitimate right to self-defense, Iran has taken a series of measures to prevent aggressors and their supporters from exploiting the Strait of Hormuz for their invasion goals.

The statement said that ships belonging to the U.S., Israel, and other involved aggressor countries do not meet normal and non-hostile passage conditions, and Iran will handle them according to law; ships from other countries or non-hostile ships related to them, as long as they have not participated in or supported aggression against Iran and comply with Iran’s safety regulations and measures, can safely pass through the Strait of Hormuz after coordination with Iranian authorities.

The statement emphasized that to restore the sustainable security and stability of the Strait of Hormuz, the military invasion and threats against Iran must cease, actions by the U.S. and Israel that undermine Iran’s stability must stop, and Iran’s legitimate interests must be fully respected.

Meanwhile, U.S. Secretary of the Treasury Janet Yellen’s latest remarks also drew market attention. She stated that U.S. and Israeli actions against Iran aim to destroy Iran’s defenses along the Strait of Hormuz.

On March 22, local time, Yellen said on a program that Trump would “take all necessary measures” to achieve the set goals, including destroying Iran’s air force and navy, depriving Iran of nuclear capabilities, and “weakening its ability to project power internationally.”

Yellen said, “A military operation is underway to gradually weaken Iran’s defenses along the Strait of Hormuz. This operation will continue until these facilities are completely destroyed.” She added, “Sometimes, you have to escalate to de-escalate.”

During the program, she stated, “Even if it means enduring 50 days of high oil prices, if it can secure a future where we no longer face a nuclear-armed Iran, it’s worth it.”

When asked when oil prices might fall back, she replied, “I’m not sure if it’s 50 days or 100 days.”

Israel’s military actions against Lebanon are also escalating. According to Xinhua, the Israeli Defense Forces announced on the 22nd that IDF Chief of Staff Aviv Kochavi approved expanding military operations in Lebanon, including advancing ground operations within Lebanon.

The statement quoted Kochavi as saying that actions against Hezbollah in Lebanon “are just beginning,” and the IDF is preparing to push forward with ground operations according to the established plan and for long-term engagement.

The statement also said that any threats against Israeli civilians will be responded to. Iran and Lebanon are interconnected battlegrounds. After the military actions against Iran end, Hezbollah in Lebanon will be “isolated and unsupported.”

(Source: Securities Times)