DATA & FIGURES
The conflict has resulted in at least three tankers being struck overnight, with one Indian national killed and eight others wounded. The UAE defense ministry has reported that two national tankers were targeted by Iranian cruise missiles in the southern Strait of Hormuz. The US has also announced plans to impose a 20% transit fee on international vessels wishing to transit the Strait of Hormuz, although this plan has been reversed by President Trump.
THE SCENARIO
The conflict between Iran and the US is taking place against a backdrop of heightened tensions in the region, with Houthi missiles being launched at Saudi Arabia and US airstrikes being carried out against Iranian targets. The IRGC has warned that it will 'control the entire Hormuz Strait in wartime', while the US has vowed to 'hit Iran very hard'.
DIRECT QUOTE
"As long as the US evil stays in the region, not a drop of oil and gas will be exported from the region." — IRGC, via state media
BBN INSIGHT
The conflict between Iran and the US has significant implications for global energy supplies and the economy. The Strait of Hormuz is a critical waterway for international trade, with 20% of the world's oil passing through it. The IRGC's warning that it will block oil and gas exports from the region could have a devastating impact on the global economy, particularly if it leads to a significant increase in oil prices. On the other hand, the US's plan to impose a transit fee on international vessels could also have far-reaching consequences, potentially leading to a trade war between the US and other nations.
MARKET REACTION
The price of WTI oil has declined amid the conflict, trading near $78/BBL. The US dollar has also been affected, with the DXY index experiencing volatility. The conflict has also had an impact on crypto markets, with the price of Bitcoin experiencing increased volatility.