US-Iran military escalation

The United States and Iran engaged in a series of military strikes over multiple days, escalating tensions in the Middle East. The US launched missile attacks targeting Iranian air-defense systems, coastal radar sites, and missile and drone capabilities. Iran retaliated with missile and drone attacks on US bases in Jordan, Bahrain, Kuwait, and Qatar, and also struck vessels near the Strait of Hormuz. President Trump reinstated a blockade on Iran and vowed retaliation for the killing of US soldiers. The Houthis imposed a maritime blockade on Saudi Arabia. The conflict drove crude oil prices up over 9%, raised inflation expectations, and strengthened the US dollar. Central banks face pressure to tighten monetary policy. Gold and silver prices experienced volatility, initially falling then rising on safe-haven demand. The yen weakened to a 39-year low against the dollar, increasing intervention risk. The United States — Federal Reserve, ECB, and Japan — Bank of Japan are monitoring the situation for policy implications.