Iran hits new Gulf targets, closes Strait of Hormuz
Iran has expanded its strikes to Qatar and the UAE, signaling a material escalation. The Strait of Hormuz has been closed, with permits to resume once stability returns.
The US has struck over 300 Iranian military targets in response. This escalation is expected to put upward pressure on crude and freight rates.
The revocation of the licence for Iranian crude sales will tighten available barrels, adding a bullish input for prices. Political sensitivity around gasoline costs may lead to further US engagement.
The continued public absence of Iran’s new supreme leader adds uncertainty over Tehran’s command structure, which markets may price as elevated escalation risk.