US Strikes Iran, Hormuz Tensions Grow
The United States launched another airstrike on Iran on Wednesday, marking the fifth consecutive day of Washington's military operations. This latest attack came after President Donald Trump vowed to increase pressure until Tehran stops attacking ships in the Strait of Hormuz and reopens the vital shipping lane.
In a 90-minute operation, the US military struck a missile storage and launch facility on Greater Tunb Island in the Persian Gulf, near the Strait of Hormuz. A second wave of strikes followed at 3:00 p.m. Eastern Time, according to US Central Command (CENTCOM).
Amid the escalation, Trump announced that Iran had released an American citizen held since December 2024. Trump called the move a "goodwill gesture," though he did not provide further details regarding the identity of the American or the terms of the agreement behind his release.
US-Iran tensions have escalated again after an interim memorandum of understanding signed about a month ago nearly collapsed. Both sides accused each other of violating the agreement regarding free shipping access through the Strait of Hormuz, a vital waterway used by Saudi Arabia, Qatar, the United Arab Emirates, and other Gulf states for energy exports.
Oil prices also strengthened for the third consecutive day. Brent briefly moved above US$85 per barrel, recording a weekly increase of around 13%. Market concerns arose as Iran declared the Strait of Hormuz would remain closed until the US accepted Tehran's desired legal mechanism, while the IRGC asserted that regional oil and gas exports must be available to all or none.
As a result of this conflict on the market, it has the potential to keep oil prices high and revive the risk of global inflation. If the Strait of Hormuz remains disrupted, energy costs could rise further, putting pressure on risky assets, and making central banks more cautious about lowering or holding interest rates. However, the signal that the release of the US citizens could provide a diplomatic opportunity if both sides reopen the negotiation space. (gn)
Source: Newsmaker.id
