Global markets are feeling the tremors amidst rising tensions between the US and Iran, particularly in the strategically vital Strait of Hormuz.
Escalation of Conflict in the Persian Gulf
Recently, tensions between the US and Iran reached new heights following targeted US airstrikes on Iranian nuclear facilities. These actions, involving advanced bunker-buster bombs and missiles, significantly elevated the risk of broader conflict in the region.
Threat of Closing the Strait of Hormuz
Iran’s parliament swiftly approved a measure threatening to close the Strait of Hormuz, through which approximately 20% of global oil shipments transit daily. However, the ultimate decision lies with Iran’s Supreme National Security Council.
US Appeal to China
US Secretary of State Marco Rubio has made an urgent appeal to China to exert influence over Iran in a bid to ease tensions. This request highlights the pressing need for diplomatic solutions amidst rising global market fears.
The rising tensions between the US and Iran pose significant risks to global markets, especially with the potential closure of the Strait of Hormuz, emphasizing the importance of international diplomacy.
