Middle East War Escalates as Iran Threatens Hormuz Shipping, Oil Prices Surge
The conflict in the Middle East has intensified dramatically after the United States and Israel launched large-scale military strikes on Iran, triggering regional retaliation, drone attacks, and growing fears of disruption to global energy supplies.
Former US President Donald Trump, speaking at the White House, defended the decision to attack Iran, calling it the “last, best chance” to stop the Iranian regime. He confirmed that US forces are continuing “large-scale combat operations” following the initial strikes.
The US and Israel carried out coordinated attacks over the weekend targeting Iranian military and nuclear facilities. Iranian Supreme Leader Ayatollah Ali Khamenei was reportedly killed during the strikes, marking a major escalation in the conflict. Israeli forces have since launched additional strikes on Tehran and other Iranian locations.
Iran threatens Strait of Hormuz shipping
Iranian officials have warned they could “set fire” to ships attempting to pass through the Strait of Hormuz, a critical global shipping route that carries roughly one-fifth of the world’s oil and liquefied natural gas (LNG).
Industry analysts say any prolonged closure of the strait could trigger a severe global energy crisis. Qatar transports about 90% of its LNG exports through the waterway, and the country has already suspended production at one facility after a reported drone attack.
Energy experts warn that a sustained disruption could create a shock to global gas markets even larger than the 2022 crisis caused when Russia cut pipeline gas supplies to Europe.
Asian economies including China, India, Taiwan and South Korea are expected to be among the most exposed to supply disruptions.
Oil prices and shipping costs surge
Global energy markets have already reacted to the escalating conflict. Brent crude oil prices rose to around $79 per barrel, while US-traded oil increased by about 1.5%.
Shipping costs have also skyrocketed. The price of hiring a supertanker to transport oil from the Middle East to China has climbed to more than $400,000 per trip, nearly double the rate seen just a week earlier.
Satellite images have also revealed damage to a major oil refinery in Ras Tanura, Saudi Arabia, after drone strikes. The facility, capable of processing around 550,000 barrels of oil per day, has been temporarily shut down.
Drone attacks hit US and allied facilities
Security concerns across the region have increased after several drone attacks targeted US and allied infrastructure.
Saudi Arabia’s defence ministry confirmed that the US embassy in Riyadh was struck by two drones, causing a limited fire and minor damage to the building. Six US service members have reportedly been killed and 18 injured in related attacks.
Drone strikes have also reportedly affected multiple facilities in the region, including data centres operated by Amazon Web Services in the United Arab Emirates and nearby Bahrain.
In response, the US State Department has urged American citizens across much of the Middle East to leave the region due to “serious safety risks.”
Fighting expands across the region
Israel has continued its military campaign beyond Iran, launching strikes against Hezbollah targets in Lebanon. Lebanese health officials say at least 52 people have been killed as residents of Beirut were forced to evacuate to shelters amid ongoing bombardment.
Iran has also launched missile attacks toward Israel, triggering air defence responses across several Israeli cities.
Meanwhile, British Prime Minister Keir Starmer said the United Kingdom deliberately chose not to participate in the US-Israeli strikes, stating his government “does not believe in regime change from the skies.”
Political debate intensifies in the US
The conflict has sparked debate inside the United States about Washington’s role in the war.
Commentator Tucker Carlson criticized the escalation and urged the US government to rein in Israel, arguing that Israeli Prime Minister Benjamin Netanyahu’s decisions risk drawing the United States deeper into the conflict.
Netanyahu dismissed claims that Israel pressured Washington into the war, saying that Trump “does what he thinks is right for America.”
US Vice President JD Vance said the goal of the operation is to ensure Iran can “never have a nuclear weapon,” but insisted the United States does not intend to enter another prolonged multi-year war.
Cultural heritage site damaged in Tehran
Iranian state media also reported that Tehran’s historic Golestan Palace, a UNESCO World Heritage Site, sustained damage during strikes near Arg Square in the capital. The palace was once the royal residence of Iran’s Qajar dynasty and later served as the official seat of the Pahlavi monarchy.
As military operations continue and threats to shipping lanes grow, analysts warn that the conflict could have far-reaching consequences for global energy markets, regional security and international trade.