WS #12031

The US-Iran conflict has escalated sharply with new developments in the Strait of Hormuz. President Trump announced a 20% transit fee on all cargo vessels passing through the Strait, effectively reinstating a blockade on Iranian shipping. This has driven Brent crude oil to $83-85 per barrel, a 10% increase on the day. Iran retaliated with missile attacks on two UAE oil tankers in the Strait, killing an Indian sailor and wounding eight others. The US conducted a third consecutive night of airstrikes on Iranian coastal targets, while Iran struck US bases in Bahrain and Jordan. Saudi Arabia also conducted airstrikes on Houthi positions in Yemen. The conflict is escalating rapidly with no de-escalation signals. BP's net debt has fallen up to 13% due to the oil price surge, and the FTSE 100 slipped as energy gains were offset by broader market concerns. Asian markets, particularly India's Sensex, fell over 600 points on oil price fears. The Strait of Hormuz tolls represent a major escalation that could double shipping costs and disrupt global energy trade.