Hormuz

Iran and Oman exchange proposals to manage Strait of Hormuz | US-Israel war on Iran News

Oman’s proposal is based on the Strait of Malacca in East Asia, a model whereby ships that use the strait provide voluntary fees.

Iran and Oman have exchanged proposals regarding the future management of the Strait of Hormuz, as points of contention continue to exist between the two nations whose territorial waters border the strategic waterway.

Oman presented a proposal to Iran ⁠for ⁠a joint regional mechanism to manage the Strait of Hormuz with “voluntary fees”, Reuters reported on Tuesday. Under the Omani proposal, which reportedly has regional backing, Iran would not exercise sole control ⁠of the strait, an unnamed Gulf source and Western diplomat ⁠told the news agency.

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Oman’s proposal is reportedly based on the Strait of Malacca, which connects the Indian and Pacific Oceans. There, Indonesia, Malaysia and Singapore ask ships that use the strait to voluntarily contribute to fund navigation, environmental protection, and ‌search-and-rescue operations.

This proposal aims to contribute to ending the global disruption to trade caused by the strait’s closure in the US-Israeli war on Iran. Tehran, however, says the strait ⁠cannot go back to its pre-war status where shipping flowed freely,

In comments to Iranian state media on Tuesday, Kazem Gharibabadi, the country’s deputy foreign minister for legal and international affairs, said Tehran rejects an Omani proposal for an equal division of transit routes between the two countries, as such a plan does not address Tehran’s security concerns.

Gharibabadi said that Tehran proposed to Oman that Iran would manage shipping through its side of ‌the strait and Muscat would manage part but not all of the opposite lane.

He added that Tehran has “no plans to negotiate with the US”, but affirmed talks are proceeding “step by step” with Oman, warning that Tehran will consider “any action” to maintain control over the strait, including the resumption of war.

“The Omanis are now suggesting three lines for the maritime traffic: one that runs through Iran’s territorial waters, an international one, and one through Omani territorial waters,” said Al Jazeera’s Resul Serdar, reporting from Tehran. “Despite public statements, our sources tell us Iran is demonstrating some flexibility.”

Al Jazeera’s Tohid Asadi, also reporting from Tehran, said there remain many “points of contention” between Oman and Iran on Hormuz. These include the trajectory of the ships, the fees, the question of who will define the arrangements, and mine clearances – which will reportedly be Iran’s responsibility.

Paul Musgrave, a professor at Georgetown University in Qatar, said Oman’s proposal to Iran to get the Strait of Hormuz running again is positive, but it remains to be seen if hardliners in Iran will go for it.

Musgrave noted that under the Strait of Malacca model, voluntary contributions raise about $70m annually, far from the $1m per ship that’s reportedly been proposed by Tehran as a “service fee” in the Strait of Hormuz.

Meanwhile, Gulf Cooperation Council (GCC) foreign ministers met via video call on Tuesday to discuss the latest developments in the conflict, including ways to improve cooperation on issues surrounding freedom and navigation through the waterway, a statement from the Qatari Foreign Ministry said.

The United States suspended a nearly two-week-long campaign of air strikes against Iran over the weekend after pressure from regional mediators to find a diplomatic solution and to return to the memorandum of understanding signed in June, which would allow shipping to resume in the Strait of Hormuz. The strait carried one-fifth of global energy supplies before ⁠the February 28 start of the US-Israel war on Iran.

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Iran rejects Trump frozen funds plan, warns ships of Hormuz transit ban | Shipping

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Iran rejected US President Donald Trump’s claim that ships damaged by Iran in the Gulf would be compensated from frozen Iranian funds. IRGC spokesperson Ebrahim Zolfaghari warned that any vessel taking such money will be banned from transiting the Strait of Hormuz.

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What lies ahead for Iran’s economy as scope of US war grows beyond Hormuz? | US-Israel war on Iran News

Tehran, Iran – Iran and the United States have returned to mediated talks, and their military action is temporarily suspended, but the war continues to impact international maritime corridors beyond the Strait of Hormuz as well as domestic markets.

The near-total closure of the strategic waterway, disruptions in the Red Sea by the Iran-aligned Houthis in Yemen and Ukraine attacking an Iranian vessel in the Caspian Sea have all kept tensions high.

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Iran’s government is also facing more tough choices, including a potential fuel price hike amid high social and economic discontent, as the US military enforces a naval blockade of the country’s southern ports for a second time.

The Ministry of Petroleum said on Saturday that Iran has sold $11.5bn of crude oil during the war without specifying the exact dates and $6.5bn during the period of the now-suspended memorandum of understanding (MoU) signed with the US last month. It said the combined figure represented 60 percent of the full-year oil revenue target in the budget.

The signing of the June 17 MoU led to the partial reopening of the Strait of Hormuz and lifting of the US naval blockade on Iran, which eased some of the pressure on global oil markets and allowed Iran to export oil stored on supertankers waiting to sail from its territorial waters. Iran’s Petroleum Ministry said increased oil prices generated about $3bn in additional value in the first half of the year and $11bn from the yields has so far been transferred to government coffers despite US embargoes.

During the previous blockade that was imposed on April 13 and lasted a little over two months, Iranian authorities attested to near-zero crude exports. A prolonged second blockade risks further reducing Iran’s export revenues and piling pressure on Kharg Island, through which about 90 percent of Iran’s crude oil exports pass, and other Iranian storage and export sites, which could in turn affect production at petrochemical plants and make an eventual restart costlier and slower.

The US military’s Central Command (CENTCOM) said that as of Saturday, soldiers had redirected 12 commercial vessels trying to run the blockade that has been in place since mid-July, disabled two that did not comply and boarded two “to ensure total compliance”.

The US military also showed footage of heavily armed soldiers rappelling down from a helicopter onto the deck of the Charminar, an Iran-linked oil tanker subject to US sanctions since last year for allegedly being part of the Shamkhani network. The US says Iranian oil magnate Mohammad Hossein Shamkhani plays a central role in Iranian and Russian shadow fleet operations.

Iran has also said it has been redirecting multiple ships each day to keep the strait closed as its armed forces emphasised that they will not bow to pressure. On Sunday, Iranian media reports said a vessel blew up after hitting a naval mine in the Strait of Hormuz.

Still, CENTCOM has stopped extensive bombing strikes against Iran for two nights with US Ambassador to the United Nations Mike Waltz saying President Donald Trump is giving talks with Tehran “some space”.

Iran has also stopped retaliatory attacks across the region while Ministry of Foreign Affairs spokesman Esmaeil Baghaei said discussions with Oman on reopening the Strait of Hormuz have been productive.

A woman and girl cross a street in central Tehran on July 22, 2026
A woman and girl cross a street in central Tehran on July 22, 2026 [Vahid Salemi/AP Photo]

The domestic picture

The oil export constraints, however, are still adding to Iran’s existing economic woes, which are linked to domestic structural issues and mismanagement as well as years of harsh sanctions.

Iran’s infrastructure has also suffered significant damage during the war launched by the US and Israel in late February and may fare worse if the conflict escalates.

The government said last month that about 230 million cubic metres (300 million cubic yards) per day of Iran’s pre-war natural gas output of roughly 650 million cubic metres (850 million cubic yards) was lost due to US and Israeli bombing, worsening electricity and petrochemical shortages.

Sekhavat Asadi, managing director of the Pars Special Economic Energy Zone, said on Sunday that Iran expects to restore more than 100 million cubic metres (130 million cubic yards) per day of that lost production capacity within the coming months.

Authorities are also managing a fuel imbalance as the country faces a deficit of more than 20 million litres (5.3 million gallons) per day of petrol. The shortage is managed through limited but costly imports, blending fuel components, tapping inventories stocked before the war and repeatedly asking citizens to consume less.

The Petroleum Ministry said tighter monthly fuel consumption caps may be imposed if the imbalance persists.

The government said this week that it is seriously considering doubling the price of a third tier of monthly petrol quotas allocated to individuals.

Another petrol price hike was made in December, weeks before the country was swept by a wave of nationwide protests, in which thousands of people were killed in a government crackdown in January. An overnight fuel price increase in November 2019 also triggered deadly nationwide protests.

The capital, Tehran, and cities across the country are facing rolling electricity cuts, which also create water and communications disruptions. President Masoud Pezeshkian said he has ordered industries not to be cut off until late September to avoid further inflaming a bruised jobs market.

The closure of the Strait of Hormuz has also hit Iran’s commerce with China, its largest trading partner and buyer of oil, which has considerably curtailed its overall crude oil imports to adapt to conditions created by the war.

But nonoil trade with China has also deteriorated since the start of the war, falling by 75 percent in March and June when compared with a year before, according to Chinese customs data.

Two near-total internet shutdowns imposed by the authorities, first during the January protests and then during the war, only worsened conditions for Iran’s economy this year as it battles chronic inflation and a rapid dwindling of public purchasing power.

A report last year by the Saba Pension Strategies Institute, a think tank affiliated with Iran’s state-run pension fund, found that while a little more than 30 percent of Iranians lived below the poverty line five years ago, that rate was projected to have reached 45 percent this year – and was still rising.

Spread to Bab al-Mandeb, Caspian Sea

After repeated Iranian threats that escalating the war could spread the scope of maritime disruptions to the Red Sea, the Houthis in Yemen last week declared a blockade against Saudi Arabia, turning back or hitting vessels transiting near the strait of Bab al-Mandeb while also bombing Saudi oil facilities.

Dozens of commodity vessels have still continued their transit through the strait, including Chinese supertankers, but war-risk premiums have increased, raising import and insurance costs for all.

Saudi authorities, who lead a coalition backing Yemen’s internationally recognised government against the Houthis, have responded by launching major air attacks across Yemen.

And farther north, Ukraine has confirmed that it struck a vessel in the Caspian Sea with President Volodymyr Zelenskyy alleging it was carrying Iran-linked military cargo.

Iran’s authorities said it was a commercial vessel importing iron from Astrakhan, a port on the Volga River in Russia, and bound for Bandar Anzali in northern Iran. They said one sailor was killed and three were wounded.

The Iranian Ministry of Foreign Affairs summoned Kyiv’s charge d’affaires in Tehran to deliver a strong protest and a warning that “the act will not go unanswered”.

The incident has raised concerns that the Caspian Sea, a waterway previously used safely for trade, could also become the scene of more military confrontations.

Iran’s Caspian trade is primarily with Russia, Kazakhstan, Turkmenistan and Azerbaijan. It imports essential goods, such as wheat and other grains, corn, barley and animal feed as well as timber and fertiliser.

The country’s exports through the northern maritime route include construction materials, steel products, agricultural goods and some refined petrochemical products.

The war’s expanding disruptions have only prompted hardline state-linked analysts to advocate closer strategic partnerships with China and Russia.

“We can now say that the two war fronts in the Middle East and Ukraine are increasingly intertwined,” Mahdi Kharratiyan, a political analyst linked with Iran’s Islamic Revolutionary Guard Corps, wrote on X on Sunday.

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Oman talking with Tehran on Hormuz as US and Iran continue strikes | US-Israel war on Iran News

Omani delegation in Iran to discuss managing traffic in the strait, which has become the main focus of the US conflict.

A delegation from Oman has arrived in Iran to discuss options for managing shipping traffic in the Strait of Hormuz, as the United States and Iran continue attacks.

The Omani diplomats arrived in Tehran late on Friday for talks with Iranian officials on mechanisms governing navigation through the strait, Iran’s state-run IRNA news agency reported.

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Control over the strait has become the main focus of hostilities between the US and Iran, with the global economy exposed to rising energy prices due to the closure of the strategically important waterway, through which around 20 percent of oil and gas exports were shipped before the outbreak of the conflict.

IRNA said the delegation’s visit was part of ongoing consultations between Iran and Oman. Iran’s Foreign Ministry said that Foreign Minister Abbas Araghchi held a phone call with his Omani counterpart, Badr Albusaidi.

No details regarding the ideas being discussed were released. However, Tehran has maintained throughout the war that it is open to managing the critical waterway in coordination with Oman.

The US and Gulf states have rejected such a setup. However, Oman holds a strategic position at the entrance and exit to the strait and has historically played a mediating role in regional disputes, maintaining diplomatic ties with both Gulf states and Iran.

“Vital waterways, including the Strait of Hormuz, must remain open and accessible for navigation, free from any measures that would impede freedom of navigation and international trade flows,” Albusaidi posted on X.

 

Meanwhile, the US and Iran exchanged air strikes for the 14th day in a row, despite efforts to rekindle diplomacy aimed at persuading both to implement the Memorandum of Understanding. It achieved a pause in fighting last month but collapsed, largely due to differences over what was agreed regarding freedom of navigation in the strait.

The crisis has only deepened since Houthi rebels in Yemen declared a naval blockade against Saudi Arabia on Monday, opening a new front.

On Friday, Iran’s military claimed further attacks on US bases across the region, which have been the main target for its fire during the hostilities.

Attacks were reported on bases in Kuwait, Bahrain and Jordan, while a drone crash near Iraq’s Erbil International Airport forced the temporary suspension of flights.

Iran’s Islamic Revolutionary Guard Corps (IRGC) said they targeted US tech giant Amazon’s data centre in Bahrain for “providing intelligence support for the American child-killing army”.

The Houthis have also reportedly continued to target Saudi tankers in the Strait of Hormuz, as well as the strategic Bab al-Mandeb Strait. However, a Houthi spokesman denied the group has shut down the waterway.

The US Central Command said it had concluded air strikes on Iran. Iranian media reported four people were injured in blasts in several cities, including Khorramabad, Jask, Ahvaz and Bandar Abbas, as well as Qeshm Island.

Iran’s Health Ministry said at least 55 people have been killed in recent US attacks and nearly 650 injured.

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War escalates, oil prices surge as Iran-backed Houthis strike Saudi tankers in Red Sea

The U.S. war with Iran escalated again Thursday as Iran-backed Houthis in Yemen attacked two Saudi Araian oil tankers in the Red Sea, causing global oil prices to surge amid fears of yet another vital energy corridor being choked off by the conflict.

The attacks came after the Trump administration threatened additional strikes on Iran’s nuclear infrastructure while pushing a new deal to help Saudi Arabia develop a nuclear energy program of its own. Also Thursday, four Republicans in the U.S. House joined Democrats in a vote to halt the American military campaign absent congressional approval. Senate Republicans blocked a similar measure.

The price of oil hit $100 a barrel for the first time since May, increasing the financial pressure on Americans at the gas pump and the political pressure on President Trump to end a war he promised would last weeks but has persisted for months. At least 18 U.S. service members have died in the war.

The Houthis, who control the populous northwest of Yemen, receive arms and training from Tehran but had remained largely on the sidelines since the U.S. and Israel launched the war. Their latest strikes complicate already fraught negotiations between the U.S. and Iran after the collapse of a ceasefire this month amid renewed hostilities in the Strait of Hormuz, the other major energy passageway choked by the conflict.

The Houthis had this week announced a naval blockade of Saudi ships in the Red Sea, which stretches along Saudi Arabia’s western flank. That blockade centered on the Bab al Mandeb strait, the only southbound route for Saudi tankers headed to Asian markets.

Tanker traffic has already been heavily diminished in the Persian Gulf along Saudi Arabia’s northeast flank and between it and Iran, because of Iran’s threats to vessels traveling through the Strait of Hormuz. Saudi Arabia had diverted its oil exports to its Red Sea ports and out the Bab al Mandeb, dispatching some 4.5 million barrels via that route per day.

In a social media post Thursday, Trump said that if the Houthis continue attacking ships in the Red Sea, the U.S. “will hold Iran responsible” because the Houthis are an Iranian proxy, and inflict “major military punishment” on the Houthis and Iran.

He said he was “very disappointed” in the Houthis, “in that they have, until now, acted very professionally and smart” amid the Iran war.

At a later event Thursday, Trump said the U.S. is “doing extremely well” against Iran, which he accused of having “evil intentions.”

Democrats in the House and Senate cited the war’s spread to the Red Sea as yet another reason that Congress should act to pass a war powers measure to halt the president’s military campaign. Sen. Chris Van Hollen (D-Md.), who led the unsuccessful effort in the Senate, cited the expansion while recalling how Trump had claimed victory in Iran as far back as March.

“If we won back in March, why are more Americans getting killed in July? If we won back in March, why is the Strait of Hormuz closed? If we won back in March, why is the war expanding as Houthis attack ships transiting the Bab al Mandeb strait in the Red Sea? If we won back in March, why are oil and gas prices and diesel prices shooting through the roof again, imposing costs on every American family?” Van Hollen said. “Is that their definition of winning?”

The Houthis’ military spokesman, Yahya al-Sarea, said the group’s forces conducted “a qualitative military operation” targeting two Saudi oil tankers with missiles and drones for what he said were violations of the Houthis’ blockade on the Red Sea.

The Houthis have accused Saudi Arabia of imposing a blockade on airports and seaports in northwestern Yemen, where most of the country’s population lives and which the Houthis otherwise control. They also blamed Saudi Arabia for an attack this month on Sanaa’s airport to prevent the landing of a plane carrying a Houthi delegation returning from the funeral of Iranian Supreme Leader Ali Khamenei, who was killed at the start of the war.

Al-Sarea said that in addition to striking the two tankers, the Houthis forced 10 other ships to turn back from their passage, will “continue their naval operations against the Saudi enemy” and will “continue imposing the equation of blockade against blockade.”

The escalation of the war — and the shock wave it sent through global energy markets — added to regional uncertainty already being stoked by the Trump administration’s announcement Wednesday that it had agreed to work with Saudi Arabia to develop a civilian nuclear program.

That announcement, after years of U.S. attempts to block nuclear proliferation in the Middle East, sparked widespread concern in Washington, where lawmakers will vote on the deal, and in Israel, which has long feared a nuclear arms race in the region.

Trump administration officials said the deal would “uphold the highest standards of nuclear safety and nonproliferation,” with American firms developing the program. But they provided few details, and questions immediately arose about the absence of clear inspection protocols or any requirement that Saudi Arabia first normalize diplomatic relations with Israel.

On Thursday, Trump said the deal would be conditioned on Saudi Arabia joining the Abraham Accords and establishing diplomatic ties with Israel. White House Press Secretary Karoline Leavitt later said that Trump had not talked to Saudi leaders since making that condition public, but that they would have to agree to it or “the deal is off.”

Leavitt said that Trump had raised the matter with Saudi leaders in the past, and that it is something Trump “feels very strongly about.”

Asked whether Israel pressured the president to impose the condition, Leavitt said, “Not to my knowledge.”

Earlier this week, Defense Secretary Pete Hegseth told Congress that the Iran war has already cost the U.S. $37.5 billion. House Republicans on Wednesday pushed through a $1.15-trillion defense policy bill to fund the war moving forward. Most Democrats voted against the measure in protest of the war, and it faces stiff opposition in the Senate.

Trump in recent days has tried to deny polls showing plummeting support for the war among Americans. On Wednesday, before attending the dignified transfer of the bodies of U.S. service members killed in the war to Dover Air Force Base in Delaware, Trump claimed Americans don’t want high gas prices but “aren’t against the war.”

On Tuesday, Trump posted statistics showing that more U.S. service members died in past wars, which Democrats denounced as disrespectful to those killed in the current conflict.

The Houthis seized control of the Yemeni capital in 2014, along with much of Yemen’s populous northwest. Their advance triggered a devastating Saudi-led campaign to dislodge them. Since 2022, the two sides have been in a stalemate, though tensions have been rising again in recent months.

Mohammed al-Basha, founder of the Basha Report, a U.S. risk advisory firm focused on the Middle East and Africa, said the Houthis’ latest escalation comes as their influence is growing because of the increased importance of Bab al Mandeb while the Strait of Hormuz is choked off by Iran.

“This is their moment, because with everything happening in the Strait of Hormuz, Bab al Mandeb quadrupled in importance. By exerting maximum pressure in this period, they can maximize the effect of any kinetic action they’re trying to do,” Al-Basha said.

“Their narrative is very aggressive. They want war. And they feel that because they want war and sense that the U.S. and Saudi Arabia don’t, that they will submit to their demands.”

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Gulf oil producers race to build alternative routes to the Strait of Hormuz

Before the war, roughly 15 million barrels of Gulf oil passed through the Strait of Hormuz every day, as roughly a fifth of the world’s traded oil moved through the maritime chokepoint in peacetime.


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With the channel still largely closed and prices elevated, at least seven major pipeline projects are now under construction, in planning or under discussion to push supplies out through the Red Sea, the Suez Canal and the Gulf of Oman instead, according to Gulf officials, energy companies and market analysts.

With the Iran war reignited this month, Brent crude is trading again at around $93 a barrel at the time of writing, well above the roughly $72 it fetched after June’s short-lived truce, and the US benchmark WTI has also risen to roughly $90 a barrel.

Depending so heavily on the Strait of Hormuz “is no longer a prudent long-term strategy,” said Victoria Grabenwöger, a senior researcher at the data firm Kpler.

Two escape valves already exist, and both are close to their limits.

Saudi Arabia’s East-West pipeline, built in the 1980s when Tehran threatened shipping during the Iran-Iraq war, carries crude from the Abqaiq complex to Yanbu on the Red Sea, where tankers head south towards the Arabian Sea or north to the Suez Canal.

Meanwhile, the UAE has been channelling more oil to Fujairah, its port on the Gulf of Oman about 145 kilometres south of the Strait of Hormuz.

Together the two links had a spare capacity of some 3.5 to 5.5 million barrels a day before the war, according to the US Energy Information Administration, and both now run close to full representing around 6.5 million barrels a day.

Abu Dhabi’s state oil company is also racing to finish a project it began before the war.

Its $3 billion (€2.6bn), 300-kilometre pipeline to Fujairah, laid alongside an existing line, is designed to lift deliveries by over 1.2 million barrels a day and is roughly half built, according to Kpler, which expects the official early-2027 completion target to slip to mid-2027 because the port itself must be expanded.

Even that timetable, the firm argues, only became conceivable because of the blockade.

Red Sea relief, Red Sea risk

The Red Sea route has vulnerabilities of its own, and this week served as a reminder.

Yemen’s Iran-backed Houthi rebels, who declared a blockade on Saudi-linked shipping in retaliation for the kingdom’s blockade of Yemen and an attack on Sanaa’s airport, said on Thursday they had attacked two Saudi tankers, the Encelia and the Layla, setting both on fire.

Saudi state media reported a blaze at the bow of the Encelia with no casualties, while the UK Maritime Trade Operations centre reported a tanker struck by “an unknown projectile” southwest of Al Shuqaiq.

The Iran-backed group has disrupted the Bab el-Mandeb Strait before, a maritime chokepoint carrying about 12% of world trade, and a Houthi drone strike forced the East-West pipeline itself to shut back in 2019.

Iraq’s $60 billion bet on Washington

Nowhere is the scramble more urgent than in Iraq, which draws about 90% of state revenues from oil exports and has had to cut output because of its dependence on the Strait of Hormuz.

Prime Minister Ali al-Zaidi returned from Washington last week with 48 agreements signed with American firms, spanning energy, healthcare and technology and worth more than $60 billion, according to Reuters, including tie-ups involving ExxonMobil, Shell, Halliburton, KBR and GE Vernova.

The centrepiece is a deal with Syria to rebuild the long-dormant pipeline running from the Kirkuk fields to the Mediterranean port of Baniyas, a project Iraqi state media says Chevron will execute and which the US State Department, welcoming the plan, called “a critical energy corridor” with an initial capacity of 2 million barrels a day.

Baghdad is also weighing a line from Basra to Jordan’s Aqaba.

Washington’s ambassador to Turkey, Tom Barrack, predicted the agreements would render the Strait of Hormuz “an afterthought”.

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US Iran Conflict Escalates as Hormuz Risks Grow

The conflict between the United States and Iran intensified on Monday, with both sides launching fresh military strikes that raised fears of a broader regional crisis threatening global energy supplies, maritime security and critical civilian infrastructure. While oil prices briefly climbed above $90 a barrel amid renewed disruption in the Strait of Hormuz, attacks on desalination facilities also highlighted a dangerous expansion of the conflict beyond military targets.

Despite the escalating violence, both Washington and Tehran signalled they remain open to diplomacy, suggesting that negotiations have not been completely abandoned even as the war enters a more volatile phase.

US and Iran Exchange Fresh Strikes

Iran’s Revolutionary Guards (IRGC) said they had launched missile attacks against U.S. military assets across the Middle East after another night of American bombardment targeting several Iranian cities.

According to Iran, ballistic missiles targeted U.S. military facilities at Jordan’s Aqaba Airport, Kuwait’s Al Adiri Camp and Ali Al Salem Air Base, as well as American positions in Syria. Bahrain also activated air raid sirens, while Kuwait reported intercepting hostile drones during the attacks.

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Meanwhile, U.S. Central Command confirmed it had carried out a ninth consecutive night of strikes against Iran, saying the operations were intended to degrade Tehran’s capability to threaten commercial shipping through the Strait of Hormuz.

Iranian media reported explosions in several cities, including Tabriz, Chabahar, Konarak, Bandar Mahshahr and Bandar Imam Khomeini, with at least one person killed and several others wounded.

President Donald Trump defended the latest strikes, describing them as retaliation for the deaths of U.S. service members in recent Iranian attacks.

Hormuz Shipping Faces Renewed Disruption

The Strait of Hormuz, through which roughly one fifth of global oil supplies normally pass, remains at the centre of the confrontation.

The IRGC claimed two oil tankers had exploded after attempting to navigate what it described as an unsafe route through the strategic waterway. Tehran did not provide details about the vessels or casualties, and the reports could not be independently verified.

Separately, the United Kingdom Maritime Trade Operations (UKMTO) agency reported that a commercial vessel off the coast of Oman had been struck by an unidentified projectile, leaving the ship adrift though its crew remained safe.

Shipping disruptions pushed Brent crude briefly above $90 per barrel as traders worried that prolonged instability in Hormuz could significantly reduce global oil exports.

The renewed uncertainty comes after vessel traffic through the strait had already fallen sharply in recent days, with many shipping companies delaying voyages or rerouting vessels due to security concerns.

Civilian Infrastructure Becomes a New Battlefield

Beyond energy markets, the conflict is increasingly threatening essential civilian infrastructure.

Kuwait confirmed that one of its desalination plants was attacked for a second consecutive day, causing a fire. Desalination facilities provide the majority of drinking water across Gulf countries, making them among the region’s most critical infrastructure assets.

Iran has accused the United States of previously striking one of its own desalination facilities and warned that any attacks on Iranian civilian infrastructure would trigger reciprocal action against similar installations across the Gulf.

The targeting of water infrastructure represents a significant escalation, raising humanitarian concerns alongside military and economic risks.

Diplomacy Remains on the Table

Despite intensifying military operations, officials from both countries suggested diplomacy has not been completely abandoned.

U.S. Secretary of State Marco Rubio said Washington would continue targeting Iranian capabilities as long as Tehran threatened international shipping but stressed that the United States remained open to a diplomatic solution.

Iran’s Foreign Ministry echoed that position, stating diplomacy remains one of the country’s instruments for pursuing national interests despite ongoing hostilities.

Tehran also confirmed that Iran’s interior minister would travel to Pakistan, which has served as an important intermediary between the two sides since the conflict began, although Iranian officials described the visit as focused primarily on bilateral relations.

Political Pressure Mounts in Washington

The conflict is also creating growing domestic challenges for the White House.

U.S. gasoline prices climbed above $4 per gallon on Monday, reversing declines seen after the temporary ceasefire reached earlier this year. Rising fuel costs have historically carried significant political consequences for American administrations and could become a major issue ahead of November’s congressional midterm elections.

Trump defended the military campaign by arguing that Iran had suffered severe damage and insisted the United States had effectively secured control over the Strait of Hormuz, despite continued Iranian attacks across the region.

Why It Matters

The latest escalation illustrates how the conflict is evolving beyond conventional military strikes into a broader campaign targeting global trade routes and critical infrastructure. While the Strait of Hormuz remains the world’s most important energy chokepoint, attacks on desalination plants introduce a new humanitarian dimension that could directly affect millions of civilians across the Gulf.

At the same time, continued disruptions to commercial shipping threaten global oil markets, supply chains and inflation at a time when many economies are already grappling with elevated energy costs.

What’s Next

The coming days will determine whether the conflict enters an even more dangerous phase. Iran appears determined to maintain pressure on U.S. forces and commercial shipping while signalling it could expand attacks against civilian infrastructure if American strikes continue.

Washington is likely to sustain military operations aimed at securing freedom of navigation through the Strait of Hormuz while attempting to deter further Iranian retaliation. However, any successful attack on major oil facilities, shipping lanes or water infrastructure could trigger a broader regional crisis involving additional Gulf states.

Although both sides continue to leave the door open for negotiations, the cycle of retaliation has significantly reduced the prospects for an immediate diplomatic breakthrough. Until meaningful talks resume, the Gulf is likely to remain one of the world’s most volatile flashpoints, with global energy markets and regional stability hanging in the balance.

With information from Reuters.

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US bombs Iran for ninth consecutive night as Hormuz tensions escalate | US-Israel war on Iran News

Iranian media report blasts in cities in the far north and far south, including Tabriz and Chabahar.

The United States has launched strikes on Iran for a ninth consecutive night, with Iranian media reporting explosions in multiple cities, including Sirik, Jask, Tabriz and Chabahar.

The attacks on Monday came as the US military announced the death of a third soldier in recent days and as a month-old ceasefire agreement between Tehran and Washington unravelled amid a struggle for control of the Strait of Hormuz.

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In a statement, the US military said the latest strikes were aimed at “degrading Iranian military capabilities used to attack commercial vessels and mariners transiting the Strait of Hormuz”.

Iran’s IRIB state broadcaster said several explosions were heard in the port cities of Mahshahr and Imam Khomeini, in the southwestern Khuzestan province. It reported further explosions near the cities of Sirik and Jask in the Hormozgan province on Iran’s southern coast, as well as near the city of Khvormuj in the Bushehr province.

Three explosions were also heard near the city of Tabriz in northwestern Iran, IRIB added, while air defences were activated in the southeastern cities of Konarak and Chabahar in the Sistan and Baluchestan province, according to the semi-official Fars news agency.

Tehran promises retaliation

Al Jazeera’s Tohid Asadi, reporting from the Iranian capital, Tehran, said the latest US strikes had again targeted Iran’s southern coast. He added that the explosions in Tabriz, if confirmed, mark the first time the northwestern city has come under attack since the recent escalation began.

“We are having yet another night of exchange of fire,” he said. “The Iranian side is also talking about retaliatory strikes, with Iranian media reporting a new wave of missiles from the province of Lorestan targeting US military assets across the region.”

Earlier, Kuwait reported confronting “hostile drone threats”, while air raid sirens sounded in Bahrain for a second time on Sunday. Sirens also sounded in Jordan, where the military said it shot down three Iranian missiles. Kuwait’s government said a desalination plant had been attacked for the second day running on Sunday, causing a fire, in what it said was a direct strike on vital civilian infrastructure.

Both Iran and the US have also taken aim at shipping traffic, with Washington saying it is enforcing a naval blockade on Iranian ports, and Tehran saying it targets vessels violating its rules on navigating the Strait of Hormuz.

Iran’s Islamic Revolutionary Guard Corps (IRGC) said on Sunday that four vessels had attempted to transit the strait via an “unsafe route” with US backing after ignoring IRGC warnings. It said two had abandoned the attempt, while the other two were involved in an “accident”. It did not elaborate.

US Central Command (CENTCOM) said it has redirected six commercial vessels and disabled another ship to ensure “full compliance” with its blockade.

Earlier, CENTCOM also said that an American soldier was killed in northern Iraq on Saturday during a “controlled detonation of unexploded ordnance” from a downed Iranian drone. It added that “unidentified remains” had been found at the site of a deadly Iranian attack in Jordan on Friday and that “an examination process to verify the remains is ongoing”.

Two US soldiers died in Friday’s attack, while a third was reported missing in action.

The latest deaths bring the number of US service members killed since the war began to 17, while more than 420 have been wounded.

The conflict, which began when the US and Israel attacked Iran on February 28, has killed thousands of people, mostly in Iran and Lebanon, and led to major disruptions to energy supplies and fears over global inflation.

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Iran says it hit U.S. command center in Syria as Hormuz fight escalates

An anti-U.S. billboard that hangs at Palestine Square in Tehran, Iran, features a sentence in Persian that reads “Blood for Blood,” on Thursday. Photo by Abedin Taherkenareh/EPA

July 17 (UPI) — Iran early Friday said it struck a U.S. special operations command center in southeastern Syria, escalating the war over the Strait of Hormuz, as the United States attacked bridges and other urban infrastructure in Iran.

The Islamic Revolutionary Guard Corps described the strike in a statement as a “surprise attack” conducted in retaliation for the seven soldiers killed early Wednesday in a U.S. attack on Bampur, near Iranshahr in southeastern Iran.

The elite military unit claimed to have destroyed a U.S. radar system and several special-operations helicopters. It claimed to have killed “a large number” of Americans.

State-run media reported Iran also attacked U.S. bases and assets in Kuwait and Bahrain in retaliation for the U.S. attacks hours earlier. Islamic Republic of Iran Broadcasting claimed the United States destroyed five bridges around Bandar Abbas near the Strait of Hormuz.

U.S. Central Command said it had completed a “major wave” of attacks on Iran at 9:40 p.m. EDT Thursday. It said it hit dozens of Iranian military targets, including coastal surveillance and air defense sites, military logistics infrastructure and maritime capabilities.

Though CENTCOM made no mention of civilian infrastructure, President Donald Trump on Tuesday warned that the U.S. military would be ramping up its attacks through the week and would include civilian targets, but explicitly stating, “Next week comes the bridges.”

While the war began in late February, with the Trump administration seeking to dismantle Iran’s nuclear weapons program and encourage regime change, this latest chapter is centered on the vital shipping lane of the Strait of Hormuz.

The Trump administration is seeking to restore freedom of navigation through the chokepoint, while Iran is fighting to maintain the leverage afforded by its ability to restrict passage.

Early Friday, the United Kingdom Maritime Trade Operations center said a tanker had been struck by an unknown projectile, causing minor damage to its port side.

“All crew are safe and accounted for,” it said.

The strike is at least the eighth attack on a commercial ship to attack in the Strait of Hormuz in a little over a week.

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Bypassing Hormuz: GCC Energy Escape Routes

The race is on to secure alternative routes for both Gulf fossil fuels and clean energy.

This article appears in the July/August 2026 issue of Global Finance Magazine.

More than 30 years after the first Gulf War, it seemed unlikely, if not unthinkable, that images of burning oil facilities would once again make headlines in the Middle East. 

Yet here we are again. And once again, the region’s energy producers must figure out how to pick up the pieces.

“It’s like Pandora’s box is open or the genie is out, but can it really be put back?” said Laury Haytayan, an energy expert and MENA director at the Natural Resource Governance Institute (NRGI), a U.S.-based nonprofit. “Gulf countries think this event could happen again, and if it does, they never want to find themselves in the same position, so they need an alternative. Now, what sort of infrastructure should they invest in? Big pipelines? Road projects? Other alternatives? Everything is on the table.” 

Laury Haytayan, MENA director at the Natural Resource Governance Institute

In March, the conflict among the U.S., Israel, and Iran escalated into a regional crisis. Tehran retaliated against Gulf Cooperation Council (GCC) states and blocked the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil and large volumes of liquefied natural gas (LNG) transit each day. The disruption pushed Brent Crude above $100 a barrel and sent shockwaves through global markets. 

For Persian Gulf states whose economies depend heavily on hydrocarbon exports, the consequences have been unprecedented. 

Damaged infrastructure and lower export revenues have weighed on growth, though the impact varies across the sub-region. According to the International Monetary Fund’s April projections, Qatar’s economy is expected to contract by 8.6%, while Kuwait and Bahrain are expected to contract by 0.6% and 0.5%, respectively. Oman, Saudi Arabia, and the United Arab Emirates (UAE) are expected to prove more resilient, with projected GDP growth of 3.6%, 3.1%, and 3.1%, respectively. 

“Saudi Arabia, Oman, and the UAE were best prepared because they have an alternative to bypass Hormuz,” Haytayan notes. “The others are largely unable to export hydrocarbons and their byproducts.” 

The conflict has affected adjacent industries, including mining, petrochemicals, and metals. The knock-on effects are already visible in global agriculture and food systems, where fertilizer supply chains are heavily dependent on natural gas. 

The GCC, led by Saudi Arabia and Qatar, accounts for roughly 25% to 30% of global exports of ammonia, urea, phosphate, and sulfur, key inputs for nitrogen-based plant boosters. Production constraints and logistical bottlenecks have tightened supply and pushed prices higher. Regional manufacturers such as QAFCO and SABIC may benefit from stronger margins in the short term, but prolonged shortages could lead to food insecurity in import-dependent countries.

The aluminum sector has also been hit hard. Smelters, including EGA in the UAE, Qatalum in Qatar, and Alba in Bahrain, have sustained physical damage. In April, the International Aluminum Institute reported that regional output had fallen to about 11,000 tons per day, a 40% decline from pre-war levels. Although the Gulf accounts for only 8% of global output, it supplies 18% of European imports and 21% of U.S. imports. 

Building GCC Energy Escape Routes

Much like elsewhere in the world, the discussion in the Gulf revolves around a single question: How to avoid Hormuz?

For now, much of Gulf trade has been rerouted to the ports of Fujairah in the UAE, Muscat in Oman, and Jeddah and Yanbu in Saudi Arabia. This stopgap has renewed importance for the Suez Canal and the Red Sea route, but it also raises eyebrows given the volatile situation in Yemen and the Horn of Africa. 

More cargo is also moving overland. Governments are studying pipeline projects, rail lines, and new roads to the north through Iraq, Jordan, Syria, and Turkey. Despite regional tensions, notably between Saudi Arabia and the UAE, industry experts anticipate consensus on building shared infrastructure. Private-sector players seizing opportunities include UAE-based TruKKer, a digital freight platform often described as an Uber for trucks, which closed a $300 million financing round in May to meet surging demand. 

None of the region’s producers is considering scaling back fossil fuel use. On the contrary, the financial sector continues to support investment in extraction and export infrastructure.

Qatar, already one of the world’s largest LNG exporters, is moving ahead with the North Field expansion, a landmark project that is set to more than double production. Although Iranian attacks in March damaged some facilities and delayed the project, the expansion remains on track. 

“Hydrocarbon financing continues to be a key strategic priority for the bank, underscoring its central importance to Qatar’s economy,” said Sheikh Abdulrahman bin Fahad bin Faisal Al Thani, group CEO of Doha Bank. “Temporary capacity constraints and shipping challenges, including concerns about key transit routes, have affected revenues in the near term, yet the overall situation remains manageable.” 

Qatar’s long-term LNG contracts continue to provide revenue stability and predictability, he adds. The North Field expansion reinforces Qatar’s position as a global LNG leader, making LNG “a major driver of medium- to long-term economic growth.” 

The picture is similar in Kuwait, where hydrocarbons account for 90% of government revenue. The country is investing in offshore exploration and overseas assets as part of a strategy to increase national production by a third over the next decade. 

Oman has also announced plans to increase oil production to 1.2 million barrels per day by 2028, up from about 1 million barrels per day currently. However, additional oil and gas is valuable only if it can reach buyers. 

In April, the UAE surprised many observers by leaving the Organization of Petroleum Exporting Countries (OPEC). For Abu Dhabi, quotas increasingly conflicted with expansion plans. Over the past several years, the federation spent about $150 billion to increase capacity to 5 million barrels a day, yet OPEC restrictions keep output closer to 3.5 million. 

To strengthen their position in global energy markets, GCC producers are not only pumping more oil but also expanding their geographic footprint.

“We’ll see increased investments in new fields as well as in storage facilities around the world,” predicts Haytayan. 

In May, QatarEnergy signed a memorandum of understanding with ConocoPhillips of the U.S. and TotalEnergies of France to explore offshore reserves in Syria. Gulf oil majors are also pursuing opportunities in Africa and South America. 

Diversification Is Still on the Agenda

Despite challenges and delays, GCC countries continue to implement their long-term diversification agendas.

“We believe the current environment is reinforcing, rather than slowing, momentum in diversification investments and ESG integration across the Gulf,” said a spokesperson for National Bank of Kuwait (NBK), which manages a $6 billion sustainability portfolio and targets $10 billion by 2030. “Rather than moving away from conventional energy, the region is pursuing a dual-track model that leverages the strength of its hydrocarbon sector to support long-term investment in renewables, hydrogen, sustainable infrastructure, and lower-carbon technologies.” 

GCC governments “will look for efficient diversification,” Haytayan said. The authorities will likely favor projects that generate revenue and a return on investment, rather than megaprojects such as Saudi Arabia’s lavishly funded Neom desert city, she said. 

For banks, opportunities for new products and services will arise as the nonhydrocarbon and clean-energy sectors develop. “Energy transition financing remains in its early stages for many institutions in the region,” Al Thani said. “ESG strategies are being developed and refined, but allocations to alternative energy remain modest relative to traditional lending portfolios. Financing activity is expected to expand into renewables, hydrogen, and other low-carbon technologies, with investor appetite gradually increasing as projects mature and risk profiles become better understood. This segment is well-positioned to capture a significantly larger share of lending activity over the coming decade.” 

While the final settlement and long-term impact of the Iran war remain to be seen, the GCC can count on strong fundamentals, clear national strategies, and a strong ambition to remain a central player in global energy markets. 

“While risk awareness has risen meaningfully, confidence in the region’s long-term role in global energy markets remains intact,” Al Thani said.

Chloe Domat is a contributing writer covering the Middle East and North Africa.

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U.S., Iran trade attacks for fifth straight day in fight for Hormuz

1 of 2 | An Iranian woman on Wednesday walks next to a huge anti-U.S. billboard featuring U.S. President Donald Trump in a coffin, accompanied by a sentence in Persian that reads, “We kill Trump.” It is displayed at the Enghelab Square in Tehran, Iran. Photo by Abedin Taherkennareh/EPA

July 15 (UPI) — The United States attacked Iran on Wednesday, and Iran struck U.S. assets across the region into Thursday morning, marking the fifth straight day of strikes between the two nations as they fight over the Strait of Hormuz.

U.S. Central Command launched two waves of attacks seeking to degrade Iran’s ability to threaten vessels transiting the vital chokepoint between Iran and Oman.

Iran’s Islamic Revolutionary Guard Corps said early Thursday that it was conducting missile and drone strikes targeting U.S. assets at Ali Al Salem Air Base in Kuwait.

“Once again, we remind the honorable people of Kuwait that the United States is committing these crimes against Muslim Iran from your soil,” the elite military unit responsible for protecting Iran’s Islamic regime said in a statement.

The IRGC-aligned Fars News Agency reported early Thursday that U.S. bases and facilities in Bahrain, as well as in Kuwait, were being struck. It separately said it was attacking U.S. assets at the Al-Azraq Base in Jordan.

The extent of potential damage could not be independently verified. However, the Kuwait Army said its air defenses were confronting drone attacks, and the Jordanian Armed Forces said they downed eight Iranian missiles early Thursday. Bahrain’s Ministry of Interior urged residents to find shelter as sirens blared, suggesting an incoming attack.

CENTCOM said in a statement that its second wave ended at 9 p.m. EDT, hitting command centers, air defense sites, coastal surveillance facilities and missile ad drone capabilities.

In announcing the strikes hours earlier, CENTCOM had said they were “targeting Iranian military capabilities used to threaten vessels freely transiting through the Strait of Hormuz.”

“The U.S. military is holding Iran accountable at the commander in chief’s direction,” the post said.

The U.S. attacks followed earlier strikes on Greater Tunb Island in the Strait of Hormuz, a key site for Iran’s coastal defenses and missile storage, during a 90-minute wave. The U.S. military also said it fired on the Curacao-flagged Belma vessel transiting international waters toward Iran.

CENTCOM accused it of violating a military blockade of Iran’s coast that Trump reimposed Tuesday afternoon to deny Iran maritime trade.

The IRGC said Ahvaz, a southwestern Iranian city, had come under U.S. attack, with missiles reportedly hitting near Baghaei Hospital, which treats children with cancer, requiring all but the most ill patients to be transferred to another medical facility.

Iran’s Parliament Speaker Bagher Ghalibaf told state media that Iran had “no reason” to abide by any deal with the United States if it did not benefit from it, but he left the door open for possible diplomacy, stating: “We must utilize diplomacy and negotiation to achieve and stabilize our national interests.”

While the war began in late February with President Donald Trump seeking to dismantle Iran’s nuclear and conventional weapons programs while encouraging regime change, the current chapter of the war is over the Strait of Hormuz. U.S. President Donald Trump is fighting to restore freedom of navigation through the waterway, down which about one-fifth of global energy supplies flow. Tehran is fighting to preserve its ability to restrict passage through the chokepoint as leverage and has previously suggested it could charge vessels that transit it.

The U.S. attacks came as Trump told reporters that Iran’s leaders “better behave” on Wednesday, one day after he threatened that the United States would strike bridges and power plants if Iran did not return to the negotiating table.

“They want to settle so badly,” Trump said later Wednesday at a defense summit in Pennsylvania. “They don’t like what we’re doing, and they do want to settle. We’ll find out whether or not we settle with them or we just finish it off.”

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Sudan faces escalating hunger crisis due to war and Hormuz disruption – WFP | Sudan war News

Renewed conflict and tensions in the Strait of Hormuz have slowed fertiliser shipments, worsening hunger in Sudan.

Sudan risks facing a deepening hunger crisis due to ongoing conflict, aid ⁠funding cuts, and rising agricultural costs driven by the global disruption caused by the Iran war, a senior World Food Programme (WFP) official has said.

“It’s a massive crisis, both in terms of numbers, but also due to the gravity,” Carl Skau, the WFP’s acting executive director, told Reuters on Tuesday.

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Skau said that more than 100,000 people were still facing famine-like conditions, placing them in the highest level of the United Nations-backed Integrated Food Security Phase Classification (IPC). “With these kinds of numbers in IPC 5 starvation, it is extremely, extremely serious,” he said.

Sudan remains the world’s largest humanitarian crisis, with around five million people facing emergency or catastrophic levels of hunger, even after an intensive ‌aid response helped reduce the number of people in famine-like conditions, Skau said.

Nearly 19.5 million people across Sudan face high levels of acute food insecurity, according to the ⁠IPC. Skau said that recent fighting around el-Obeid in North Kordofan had raised fears the ⁠city could suffer a fate similar to el-Fasher in Darfur, where conflict and siege conditions trapped civilians and hindered aid deliveries, and where the paramilitary Rapid Support Forces (RSF) carried out mass killings and gang rapes after they took control of the city in the course of their three-year conflict with the Sudanese Armed Forces (SAF).

In recent days, however, violence has eased somewhat around el-Obeid, raising hopes that aid deliveries can be expanded from 100,000 to 250,000 in the area.

The WFP is ⁠also increasingly concerned about renewed fighting over the past week in Darfur, which has forced the closure of the Tine border crossing, a route from Chad ⁠into Darfur. This renewal of conflict threatens to reverse gains made after famine took hold in parts of the country, it said.

Throughout the country, the WFP has reduced the number of people ⁠it assists from five million a year ago to about 3.5 million, and reduced rations in many areas, including in Tawila in Darfur, as it faces a $646m funding gap after cuts from major donors, including the United States, European countries and Britain.

“We’re not heading in the ‌right direction here,” Skau said. “If anything, we are falling backwards.”

Skau also warned that soaring diesel prices and fertiliser shortages linked to conflict in the Gulf and the closure of the Strait of Hormuz could further undermine ‌Sudan’s food security during the current planting season.

Sudan relies heavily on fertiliser imports from Gulf countries, while much of its agriculture depends on irrigation pumps, which may be too expensive for farmers to run.

The ⁠war between SAF and the RSF, now entering its fourth year, has displaced millions and devastated much of the country. Aid agencies have repeatedly warned of worsening food insecurity and limited humanitarian access.

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Brazil’s president criticises proposed US “Hormuz Tariff,” calls it “piracy” – Middle East Monitor

Brazilian President Luiz Inácio Lula da Silva criticised a proposal by US President Donald Trump to impose charges on goods passing through the Strait of Hormuz, saying such a measure would amount to “piracy.”

Speaking at a public event in São Paulo state on Monday, Lula said “In the past, that would have been considered piracy.”

“The United States is an important country, and I believe it fought piracy for a long time. It cannot act like a pirate today” he added.

Lula’s comments followed Trump’s announcement that the United States would seek to impose a 20 percent tariff on goods transported through the Strait of Hormuz while reimposing a naval blockade on Iran.

According to Trump’s statement, the measure was presented as a response to Iran’s announcement that it intended to close the strategic waterway. He argued that the United States would ensure freedom of navigation through the strait and that commercial shipping benefiting from that protection should contribute to its cost.

In a post on Truth Social, Trump wrote: “The Strait of Hormuz is open, and will remain open, with or without Iran. We will reimpose the blockade on Iran.”

The proposed tariff has drawn international attention because the Strait of Hormuz is one of the world’s most important maritime trade routes, carrying a significant share of global oil and liquefied natural gas exports. Any changes to shipping arrangements or transit costs could have broad implications for international trade and energy markets.

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Oil prices climb as Strait of Hormuz tensions reignite supply concerns

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The price of Brent crude, the international benchmark, gained 3.9% to $78.96 per barrel, while the US benchmark crude oil price rose 4% to $74.26 per barrel.


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Prices for both types of crude oil had recently slipped back to the levels seen before the war with Iran began, after the two sides reached an interim agreement to end the conflict and ships resumed transporting oil through the Strait of Hormuz.

However, the United States launched several waves of strikes on Iran early on Monday morning following an Iranian attack on a container ship in the Strait of Hormuz that set the vessel ablaze and left one crew member missing over the weekend. Iran retaliated by targeting countries across the Middle East.

US stock futures fell, with the contract for the S&P 500 down 0.4% and that for the Dow Jones Industrial Average 0.3% lower. Nasdaq Composite futures lost 1%.

In Asian trading, Tokyo’s Nikkei 225 index lost 1.1% to 67,786.86, while in Seoul, the Kospi declined 5.6% to 7,060.69.

Shares in South Korean memory chipmaker SK Hynix, which soared 13% on their Wall Street debut on Friday, slumped 10.6% in Seoul. Its bigger rival, Samsung Electronics, fell 6.7%.

Elsewhere in Asia, Hong Kong’s Hang Seng edged 0.1% higher to 24,202.41, and the Shanghai Composite index shed 1.2% to 3,947.34.

In Australia, the S&P/ASX 200 declined 0.3% to 8,777.00.

US stocks ticked higher on Friday after investors showed sustained appetite for winners of the artificial intelligence (AI) boom. The S&P 500 rose 0.4% and the Dow Jones Industrial Average added 0.3%. The Nasdaq Composite climbed 0.3%.

SK Hynix’s shares jumped after trading began at midday after it raised roughly $26.5 billion by selling American depositary shares at a price of $149 each.

SK Hynix’s stock in Seoul had already surged more than 600% over the past year thanks to enthusiasm for AI. The boom has translated into real profits, driven by soaring demand for computer memory. But it has also raised concerns that AI stock prices have climbed too high and that the world’s spending on chips and data centres will not generate enough productivity and profit growth to justify the investment.

That has led to sharp swings in AI stocks, which have become some of Wall Street’s most influential because of their enormous market values.

Nvidia was the single biggest force lifting the S&P 500 on Friday, rising 4%.

Beyond the uncertainty surrounding AI, investors are turning their attention to the upcoming corporate earnings season.

Companies across industries will need to deliver strong profit growth to justify their elevated share prices, which remain close to record highs. This week will bring earnings reports from many of the biggest US banks, including Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Wells Fargo, with several reporting on Tuesday alone.

Concerns about how the continued fighting with Iran will affect the global flow of crude oil are clouding the outlook for both energy costs and overall inflation.

High bond yields have been weighing on financial markets worldwide because more expensive oil and persistently high inflation could prompt the Federal Reserve and other central banks to raise interest rates.

Higher interest rates can help keep inflation under control, but they also slow economic growth and weigh on the prices of all kinds of investments.

Additional sources • AP

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Oil prices jump as US and Iran trade attacks over Strait of Hormuz | US-Israel war on Iran News

Oil prices have jumped amid the latest outbreak of hostilities between the United States and Iran over the Strait of Hormuz.

Brent crude, the main international benchmark, rose more than 4 percent on Monday as Washington and Tehran traded attacks amid their escalating standoff over control of the critical waterway.

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Brent futures for September delivery stood at $79.26 a barrel as of 05:00 GMT, the highest since June 22.

US Central Command (CENTCOM) said on Sunday that it had carried out dozens of strikes on Iran to degrade its ability to attack vessels in the strait, hours after striking hundreds of targets in the country.

US forces launched the earlier round of strikes after accusing Iranian forces of “blatantly” attacking a Cyprus-flagged container ship, the MV GFS Galaxy, as it was transiting the strait.

“The Strait of Hormuz is a vital maritime corridor for global trade. Iran does not control it,” CENTCOM said in a statement late on Sunday.

“US forces are postured and prepared to ensure that freedom of navigation remains available to commercial shipping despite Iran’s continued unwarranted aggression, harassment, threats, and arbitrary declarations.”

Iranian forces on Sunday launched a wave of missile and drone attacks against the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain in response to the US strikes.

Iran’s Persian Gulf Strait Authority, which claims the right to control traffic through the Strait of Hormuz, earlier reiterated that vessels attempting to cross the waterway without using its preferred route would “not be covered by safe passage guarantees”.

“The consequences arising from transit through unauthorized routes shall be the responsibility of the owner, operator, and vessel commander,” the authority said.

After ticking up following Washington and Tehran’s signing of a memorandum of understanding on ending the war last month, maritime traffic in the Strait of Hormuz has declined sharply amid the renewed fighting between the sides.

Just six vessels were tracked crossing the strait between 18:00 GMT on Thursday and 06:00 GMT on Friday, compared with 18-22 daily crossings earlier this month, according to maritime intelligence platform Windward.

Nine vessels were tracked in the waterway between 18:00 GMT on Saturday and 06:00 GMT on Sunday, four of which were flying the Iranian flag, according to Windward.

Roughly 130 vessels transited the strait, a conduit for one-fifth of the global oil trade in peacetime, each day before the start of the war.

Oil prices, which had returned to pre-conflict levels following the signing of the memorandum on June 17, are now about 9 percent higher than before the US and Israel launched their initial strikes on Iran in late February.

Mukesh Sahdev, founder and chief oil analyst at XAnalysts in Sydney, Australia, said he expects the per-barrel price of Brent to remain in the upper $70s during August and September amid the heightened geopolitical uncertainty.

“There could be occasional spikes and dips outside that range,” Sahdev said in a note to clients on Saturday.

“Long-haul procurement forces refiners to make supply decisions weeks in advance,” Sahdev added.

“Those decisions have already reduced immediate reliance on the Middle East, and the latest escalation is likely to reinforce rather than reverse that trend.”

Fabien Yip, a market analyst at IG in Sydney, Australia, said prices are unlikely to approach the much higher levels seen earlier in the war despite the latest turmoil.

“Oil’s return towards pre-war levels in June reflected markets pricing in a best-case outcome for the fragile US-Iran arrangement; last week’s re-escalation exposes how fragile that assumption was,” Yip said in a note to clients on Monday.

“Near-term, the risk premium should keep prices supported, though a repeat of the earlier spike appears unlikely, as demand remains slow to recover while stranded-tanker releases and OPEC+ output quota expansion continue to add barrels to an already oversupplied outlook.”

Major Asian stock markets fell on Monday amid the renewed fighting in the Middle East.

Japan’s benchmark Nikkei 225 fell more than 2 percent in afternoon trading, while South Korea’s Kospi plunged more than 8 percent.

Hong Kong’s benchmark Hang Seng Index dipped about 0.2 percent.

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US launches more strikes on Iran as Strait of Hormuz standoff deepens | US-Israel war on Iran

NewsFeed

The US has launched a new wave of strikes on Iran targeting what it says is Tehran’s ability to threaten shipping in the Strait of Hormuz. US President Donald Trump has declared the waterway open while Iran insists it is closed leading to a further escalation of attacks, as Heidi Zhou Castro reports from Washington DC.

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Iran attacks five Gulf nations, shuts Hormuz after US bombing: All to know | US-Israel war on Iran News

Iran has mounted attacks on Gulf states and declared the Strait of Hormuz closed after the United States conducted its third round of strikes in a week, in a serious escalation as the ongoing conflict spirals.

Tehran on Sunday claimed attacks on Bahrain, Kuwait, Jordan, Qatar and Oman, calling them its response to renewed US bombings on cities along its southern coast.

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The widescale US strikes came after Iran shut the Strait of Hormuz — a critical waterway and one of the biggest flashpoints in the conflict — accusing Washington of violating a memorandum of understanding (MoU) signed between the two sides last month.

So, where is the conflict headed? Here is everything we know.

Why has Iran attacked Gulf states and closed Hormuz?

Iran launched missile and drone attacks targeting US military bases and facilities in several Gulf states, while the US Central Command (CENTCOM) carried out a third round of strikes targeting radar, missile, and drone sites across southern Iran last week.

The US attacks came after Iran opened fire on commercial vessels in the Strait of Hormuz and announced the closure of the strategic waterway until further notice, with one crew member missing, according to CENTCOM.

Iran’s powerful parliament speaker and key peace negotiator, Mohammad Bagher Ghalibaf, said on Sunday, “The era of one-sided deals is over.”

“We told you: keep your word or pay the price. Reality is knocking,” Ghalibaf posted on X with an image of Article 5 of the MoU, which relates to the reopening of the Strait of Hormuz.

On Wednesday, US President Donald Trump announced that the ceasefire with Iran was over. His statement was followed by Iran’s Supreme Leader Mojtaba Khamenei pledging to avenge his father’s killing.

How did we reach here?

The fragile MoU reached between the US and Iran had several glaring gaps, keeping the door to escalation ajar.

The tensions spilled over into the Strait of Hormuz again last Monday, when Iran’s Islamic Revolutionary Guard Corps (IRGC) struck three commercial vessels, including a Qatari liquefied natural gas (LNG) tanker off the coast of Oman.

The next day, the US carried out strikes on Iranian military targets, and Tehran responded with missile and drone attacks on US bases across the Gulf, prompting Trump to call off the ceasefire.

The tit-for-tat attacks continued. On Saturday night, the IRGC announced the closure of the Strait of Hormuz until further notice after attacking a container ship using what it called an unapproved route. On Sunday, a second vessel on the strait was hit.

Where did the latest US strikes hit?

CENTCOM said its third round of strikes on Iran last week was “holding Iranian forces accountable” for their recent attack on a Cyprus-flagged ship in the Strait of Hormuz.

It said it hit about 140 military targets that “included Iranian missile and drone sites, naval capabilities, ammunition storage facilities, communication networks, and coastal surveillance locations”.

It added that more than 300 targets were struck over the course of three nights throughout the week “to degrade Iran’s ability to attack civilian mariners and commercial vessels freely transiting the strait”.

Iran’s state broadcaster IRIB said the US launched air attacks on the outskirts of the city of Veysian, in the western Lorestan province, while another strike hit a military base in Iran’s Khondab.

Officials from Bushehr, on Iran’s southern coast, told local media that US forces attacked five cities in the province, including Asaluyeh, Dir, Bushehr, Dashti and Tangestan.

Tehran has said the loss of lives and the extent of damage are under review.

Where did Iran hit back overnight?

Since the start of the ongoing conflict in late February, Tehran has accused the Gulf Cooperation Council (GCC) countries of actively supporting US military operations by hosting its bases and allowing it to use their airspace.

Oman

The IRGC claimed a “heavy and surprise” attack on logistics support centres and refuelling platforms used by US aircraft carriers at the port of Duqm in Oman, according to IRIB.

The IRGC’s public relations office told IRIB the sites were “destroyed” in the attack.

Qatar

The IRGC said it also targeted Qatar’s Al Udeid airbase with ballistic missiles and claimed to have destroyed a fighter plane maintenance centre, as well as a command-and-control centre at the base.

Qatar’s Ministry of Defence said it intercepted incoming Iranian fire. Three people, including a child, were wounded as a result of falling shrapnel from the interception of Iranian attacks, Qatar’s Ministry of Interior said.

Kuwait

Iran’s army said it used explosive drones to target a Patriot air defence system, an ammunition depot and a radar site belonging to the US military in Kuwait.

Bahrain

In another wave of drone attacks, Tehran targeted a US communications system and radar site in Bahrain.

Jordan

The IRGC said it targeted US military facilities at Prince Hassan airbase in Jordan with several ballistic missiles, and claimed to have destroyed a command-and-control centre at the base, as well as hangars housing MQ-9 drones.

INTERACTIVE - Strait of Hormuz - JUL8, 2026 copy 3-1783600705

What’s happening in the Strait of Hormuz?

Iran has closed down the strait after firing a warning shot that struck a vessel travelling on an unapproved route, and said on Sunday it had disabled a second vessel.

The strait will remain closed until “the end of US interference in this region”, the IRGC said.

Iranian officials told state media the US military has been trying to create an “illegal route” through the Strait of Hormuz, causing insecurity in the area.

The narrow-yet-vital waterway — touted as the artery of global trade, hosting 20 percent of energy flow — has been at the centre of tensions between the US and Iran since the preliminary deal was signed.

Tehran has consistently insisted that only routes approved by Iran shall be taken up during transit through the strait. It says it is open to managing the strait only with Oman, the other coastal country.

The US and the GCC countries have rejected Iran’s claim on the strait and demanded that navigation be freed of interference or any sort of fees.

On Saturday, Iranian Foreign Minister Abbas Araghchi landed in Oman, where the leaders discussed the shipping and management of the Strait of Hormuz, the Ministry of Foreign Affairs said.

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Tankers and cargo vessels in the Gulf of Oman, along shipping routes linking the Strait of Hormuz and the Arabian Sea, June 16, 2026 [AP Photo]

How have Gulf countries reacted?

Some countries had sirens blaring on Sunday afternoon, with governments asking residents to stay indoors.

Oman condemned Iran’s attacks and said it is taking “all necessary measures to deal with the developments to preserve the safety of the country and its residents”.

In Qatar, the Interior Ministry said the country’s security threat level is high and urged everyone to remain in safe places and avoid unnecessary movement.

The Kuwaiti army said its forces were responding to “hostile aerial targets” in the country’s airspace, adding that the sounds of explosions are the result of its defence systems intercepting the attacks.

Bahrain’s Interior Ministry said air raid sirens were activated, urging residents to remain calm.

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US wants Iran to pledge to stop shooting at ships in Strait of Hormuz

Meanwhile, a delegation from Qatar travelled to Iran on Friday for talks aimed at defusing tensions and easing navigation through the Strait of Hormuz – the vital waterway where some 20% of the world’s oil and liquefied natural gas passes.

Trump wrote in a post on Truth Social earlier on Friday: “The Islamic Republic of Iran has asked us to continue ‘talks.’

“We have agreed to do so, but the United States has stated to them, in no uncertain terms, that the Cease Fire is OVER!”

It is not clear when those talks will be held. Vice-President JD Vance, Secretary of State Marco Rubio, as well as special US envoys Steve Witkoff and Trump’s son-in-law Jared Kushner, are expected to oversee negotiations for the US.

According to Iranian media, Araghchi is in Oman for talks with Omani officials.

A US official said American technical teams would not be present in Oman, but would be in touch with the Omanis and Qataris as developments occurred.

In the early hours of Saturday, Trump also responded to reports that Iran had plans to assassinate him.

The US would “completely decimate and destroy all areas” of the country in retaliation to such an attack, he said.

The Wall Street Journal and other US media reported this week that Israel had shared intelligence with Washington that Iran had recently devised a plan to assassinate the US president.

However, Trump denied that Tehran had made a fresh plan or that Israel was the source of any intelligence. He told the New York Post in an interview that he had been “No. 1 [on Iran’s kill list] for a long time”.

There were also open calls for Trump’s death at the funeral of Iran’s late Supreme leader Ayatollah Ali Khamenei, who was killed in an Israeli strike on his residence in Tehran on 28 February.

On Saturday, his son and successor, Mojtaba Khamenei, released a written message that said vengeance for his father’s killing was “inevitable”.

The “matter depends neither on my personal existence nor on that of other officials. Whether we are present or not, it will come to pass,” Khamenei said.

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