Escalating tensions in the Gulf raise risks to oil flows and regional stability after Iran targets a US military site.
Iran confirmed it struck a US military base in Bahrain, warning of additional attacks if the US retaliates. The move follows US airstrikes against Iranian targets after attacks on ships in the Strait of Hormuz, a critical oil transit chokepoint.
The Strait of Hormuz, which handles about 20% of global oil supplies, has faced disruptions amid the tit-for-tat strikes. Prior ceasefire agreements between the US and Iran remain fragile, with both sides signaling readiness for further confrontation.
Markets may react to heightened geopolitical risks, particularly in oil and defense sectors, as instability in the region threatens energy supply chains.