A new military escalation between the United States and Iran has once again raised tensions in the Middle East and rekindled concerns about the global oil supply. On Monday night, American forces carried out a new round of attacks against Iranian targets, while the Houthis of Yemen, a group backed by Tehran, announced a naval blockade against Saudi Arabia, increasing the risk of disruptions on the region's main maritime routes.
The new episode comes at a time when regional mediators are trying to negotiate a ten-day ceasefire between Washington and Tehran. The proposal seeks to reduce hostilities and resume the previously signed memorandum of understanding, although analysts believe that achieving this goal will still be a challenge.
According to the U.S. Central Command (Centcom), the military operation began at 21h (U.S. Eastern time). In a statement, the agency said: “American forces struck Iranian military command centers, maritime facilities, missile and drone launch sites, and air defense systems to degrade Iran’s ability to continue attacking commercial vessels transiting the Strait of Hormuz.”
Despite the offensives, Centcom said that the flow of commercial ships through the Strait of Hormuz remains active. Since the beginning of May, about 900 commercial vessels and approximately 450 million barrels of crude oil have crossed the waterway with support from American forces.
Hours later, the conflict saw new developments. Iran launched an attack against an oil tanker sailing through the Strait of Hormuz, forcing the crew to abandon the vessel. The region is considered one of the most important maritime routes on the planet, responsible for the passage of approximately 20% of the oil traded worldwide.
At the same time, Kuwait reported that Iranian attacks hit several power generation and water desalination plants. According to the country’s Ministry of Electricity, Water and Renewable Energies, the fires were brought under control and teams continue working on restoring the facilities, which are essential to the population’s drinking water supply.
Another factor that heightened market concerns was the Houthis’ announcement of an immediate maritime embargo against Saudi Arabia. The group accused Riyadh of maintaining an “aggressive siege” and said that the measure represents a response to Saudi military actions.
The Saudi Arabia-led coalition reacted quickly, calling the decision “a blatant violation of international law” and promising to respond to the naval blockade.
The effects appeared immediately in the energy market. Brent crude, the international benchmark, at one point posted strong volatility and was trading up 1,1%, quoted at US$ 90,20 per barrel. Meanwhile, West Texas Intermediate (WTI), the U.S. benchmark, was also rising 1,1%, reaching US$ 84,13.
In addition to oil, investors followed developments across different markets, including cryptocurrencies, as periods of geopolitical instability tend to influence the behavior of global assets. Meanwhile, traders remain attentive to diplomatic negotiations, which may determine the next steps in the crisis between the United States and Iran.
