May 2, 2026, 9:52 AM EDT. The ongoing U.S.-Iran standoff, especially the closure of the Strait of Hormuz, is prompting lenders to tighten credit standards despite stable FICO scores. Even borrowers with previously acceptable scores, like 670 or 690, now face loan denials or delayed approvals. Experts highlight banks' internal risk tightening amid economic uncertainty fueled by rising costs from disrupted oil and commodity supplies. This shift is not publicly announced but felt by consumers seeking mortgages and auto loans. The Federal Reserve's mixed signals on interest rates add complexity but haven't eased lenders' caution. Credit evaluators are acting defensively in this volatile environment, constraining consumer access to credit amid geopolitical and economic pressures.