US and Iran Trade Strikes for 10th Night; Oil Prices Hit $90 as Hormuz Shipping Collapses
The United States and Iran are locked in a tenth consecutive night of military strikes, pushing oil prices above $90 a barrel and forcing Pakistan and Bangladesh to buy their most expensive liquefied natural gas in years as the Strait of Hormuz empties of tanker traffic [201190] [200419] [201024].
The conflict escalated after Washington widened its military strikes on Iranian targets, prompting Iran to declare itself at "full scale war" with the US [201190] [198970]. In response, Iran struck tankers in the Strait of Hormuz—a narrow waterway carrying about one-fifth of the world's oil—while Houthi rebels in Yemen announced a maritime embargo against Saudi Arabia in the Red Sea, threatening to block Saudi ports [200871] [201021] [196361]. Shipping traffic in the Persian Gulf has dropped to its lowest level in over a month, pushing crude prices to a one-month high [198566] [200889].
Brent crude briefly touched $90 per barrel after Iran hit tankers, though prices later fell back on hints of mediation [200419]. Analysts warn the Strait of Hormuz may not return to normal operations soon, with Goldman Sachs forecasting Brent could surge above $120 a barrel if the waterway remains disrupted [196393] [201023].
The supply crunch has hit developing economies hardest. Pakistan and Bangladesh, already struggling with high energy costs, are now purchasing some of their most expensive LNG shipments in years, straining government finances and forcing both countries to rethink their reliance on the super-chilled fuel [201024]. Experts describe the situation as a "cycle of enhanced risk," where each strike increases the chance of a wider war, with no easy path to de-escalation despite both sides signaling a desire to stop [201190].