WS #6539
The US-Iran conflict in the Strait of Hormuz is ESCALATING sharply. Iran has rejected Trump's 'Project Freedom' initiative to reopen the strait, attacked UAE oil infrastructure (Fujairah port fire, missiles intercepted), and struck US Navy destroyers with missiles and drones. The US has responded by striking Iranian fast boats and deploying destroyers into the Persian Gulf. Brent crude initially fell 1% to $113.27 but then surged ~5% to ~$114 as Iran's attacks and rejection of the plan spooked markets. The UAE confirmed intercepting missiles from Iran. Iran's IRGC published a new 'control zone' map of the strait, warning ships to comply or face 'grave risks'. The Strait remains effectively closed with 800+ ships stranded. Oil prices are volatile but elevated near $114/bbl. The Philippines reported April inflation at 7.2% (vs 5.5% forecast), driven by fuel costs from the war. Gold slipped below $4,600 on Fed hawkishness. Bitcoin tested $80,000 but stalled. Spirit Airlines shutdown continues to reverberate. The dominant narrative is ESCALATING military confrontation with direct attacks on UAE soil, rejection of US maritime operation, and sustained oil supply disruption.
Key developments
- Iran attacks UAE oil port Fujairah, missiles intercepted
- US strikes Iranian fast boats in Strait of Hormuz; Iran claims hit on US frigate
- Brent crude surges ~5% to ~$114/bbl after Iran attacks
- Philippines inflation surges to 7.2% in April, well above forecast
- Gold slips below $4,600 on Fed hawkishness; Bitcoin stalls near $80,000