Middle East Crisis Deepens: Oil Surges as US and Iran Resume Strikes Near Strait of Hormuz

Global markets and diplomatic channels are reacting to a dramatic escalation in the Middle East, as oil prices climb above $90 following renewed strikes between the US and Iran.

Amid the escalating conflict, Pakistan PM has urged restraint during a meeting with Iranian President. Meanwhile, Trump stated that Iran is "dead" after the first US attack in weeks, further describing Iran as a failing nation and noting that the administration is sending a warning to Iran with an AI video, which Vance also commented on. Additional statements from Bessent suggest that Iran is lashing out amid economic pressure, while Centcom has officially denied IRGC claims that a supertanker was hit by mines in the Strait of Hormuz.

Regional and international reactions are intensifying. UAE, Qatar, Kuwait, Egypt, and Jordan have strongly condemned renewed Iranian attacks, while the IRGC has separately claimed attacks on US bases in Jordan. Diplomatic efforts continue as the Qatari PM meets the Iranian foreign minister in Tehran, and France focuses on Gulf diplomacy amid the Hormuz crisis. On the ground, Iranians are resorting to panic buying as fuel shortages hit, and the Iran ambassador has lost diplomatic immunity in Lebanon. These developments unfold just ahead of the SCO summit, raising critical questions regarding economic shocks and market stability, as analyzed in Manus on Markets.