US-Iran conflict resumes over Hormuz

Iran and the United States have ended their fragile peace agreement, signed only a month ago, with the exchange of missile fire. The renewed confrontation has disrupted the flow of oil and gas through the Strait of Hormuz, a critical chokepoint for global energy supplies. Iran has fired missiles at ships navigating near Oman's coast, while the US has proposed a 20% fee on cargo value for vessels passing through the strait. Simultaneously, Ukraine's drone attacks on Russian refineries have forced Russia to halt diesel exports, tightening global diesel supplies. Australia, the world's largest diesel importer, faces potential fuel price increases and supply constraints. US strategic oil reserves are at their lowest since 1983, limiting options for emergency releases. Both the US and Israel face elections later this year, which could alter their approaches.