Middle East War Escalates, Oil Surges

The Middle East war has intensified with Donald Trump reiterating threats to bomb Iran, leading to a surge in oil prices for West Texas Intermediate and Brent Crude. Iran has retaliated by attacking American steel and aluminum industries in the United Arab Emirates and Bahrain, as well as Rafael arms factories in Israel, following earlier US-Israeli strikes on Iranian steel plants. The Strait of Hormuz, a critical shipping route, remains largely shut, prompting a UK-led coalition of 40 countries to demand its immediate reopening and the Gulf Cooperation Council to call for UN Security Council authorization of force. Iran is drafting a peacetime protocol for the Strait with Oman. The conflict has severely impacted global energy markets, causing Pakistan and Bangladesh to drastically hike fuel prices, and the Czech Republic and Romania to cut excise taxes on diesel. Iraq's oil export revenues have plummeted, forcing it to reroute crude exports through Syria. The Philippines declared a national energy emergency, though Iran has pledged safe passage for its oil shipments. Financial institutions in Paris, including Citigroup and Goldman Sachs, have increased security due to potential links between a thwarted attack and a pro-Iran group. United Arab Emirates — Dubai's luxury sales have also been negatively affected by reduced tourism.