U.S.-Iran Conflict: Shipping Risks Escalate in Strait of Hormuz Amid Oil Price Drop

Military activity in the Strait of Hormuz has intensified as a cargo ship north of Oman caught fire following a projectile strike. The UK Maritime Trade Operations (UKMTO) also reported a separate attack off the coast of the UAE. While Iran has resumed crude exports via its Jask terminal using 'dark' tankers to evade detection, the disruption to the global chokepoint—which handles 20% of traded oil and gas—has contributed to a 10% plunge in oil futures. Regional allies, including Qatar, Bahrain, and Saudi Arabia, are reportedly facing increased strikes on radar and air defense systems due to their role as hosts for U.S. military assets. On the domestic front, President Donald Trump’s administration continues to receive congressional support for the military operations, though some Republican lawmakers are raising concerns regarding the long-term economic fallout. Representative Don Bacon (R-NE) characterized the joint U.S.-Israeli effort against Iran as 'long overdue' but acknowledged uncertainty within the House GOP regarding the conflict's endgame and its impact on domestic inflation. Internationally, New Zealand's Foreign Minister expressed optimism that the war would conclude more quickly than anticipated.