US-Iran Strait of Hormuz Conflict

The United States and Iran engaged in renewed hostilities over the Strait of Hormuz, a critical oil shipping route. The U.S. launched airstrikes on Iranian coastal defense systems, missile sites, and maritime capabilities after Iran attacked a container ship and claimed control of the strait. President Donald Trump reimposed a naval blockade on Iranian ports and proposed a 20% fee on cargo transiting the strait, later replacing it with trade deals. Iran retaliated by targeting U.S. allies in the Gulf, including Bahrain and Jordan, and fired warning shots at ships. The conflict disrupted oil tanker traffic, causing Brent Crude prices to surge over 9% to $83.30 per barrel. Stock markets fell, with the S&P 500 down 0.8% and the Nasdaq down 1.6%, led by declines in AI and semiconductor stocks. South Korea's Kospi plunged 9% as SK Hynix dropped 15.4%. Bond yields rose on inflation fears, and the dollar strengthened. The U.S. military conducted mine clearance and escorted vessels through alternative routes. Iran's threats alone deterred commercial shipping. The conflict also impacted Iraq, as Prime Minister Ali al-Zaidi visited the White House amid pressure to disarm Iran-backed militias. The situation remains volatile with no lasting peace deal.