BEIJING: Iron ore prices wobbled on Tuesday, as investors weighed rising freight costs due to a widening Iran conflict choking shipments via the crucial Strait of Hormuz against falling demand amid production restrictions among Chinese steelmakers. An Iranian Revolutionary Guards senior official said on Monday that the Strait of Hormuz is closed and Iran will fire on any ship trying to pass, Iranian media reported, sending oil prices and shipping costsrocketing higher. The most-traded iron ore contract on China’s Dalian Commodity Exchange (DCE) was flat at 748.5 yuan ($108.73) a metric ton, as of 0212 GMT. The benchmark April iron ore on the Singapore Exchange was down 0.41% at $98.85 a ton, as of 0202 GMT. “Right now, we are seeing an increase in freight costs which is affecting many markets,” said Tomas Gutierrez, head of data at consultancy Kallanish Commodities. Rising freight costs raised costs for iron ore and therefore aided ore prices, said analysts. However, hot metal output, typically a gauge of iron ore demand, is expected to fall due to production curbs during China’s annual parliamentary meeting starting March 5, keeping a lid on ore price upside. Some Chinese steel mills were required to cut output during the key meeting to ensure cleaner air quality. Swelling portside iron ore inventory, sitting at their record high, also suppressed ore prices. Other steelmaking ingredients were mixed with coking coal down 0.18% and coke nudging up 0.03%, respectively. Steel benchmarks on the Shanghai Futures Exchange lost ground. Rebar and wire rod dipped 0.42%, hot-rolled coil slid 0.4%, and stainless steel shed 0.49%.