Iran attacks Gulf countries following fresh US strikes – Middle East crisis live

Shipping traffic in the Strait of Hormuz has significantly decreased due to renewed fighting between the United States and Iran. Since Tuesday, no large vessels have been broadcasting their location via the US-coordinated route, and traceable crossings have "effectively ground to a halt." This decline in traffic, from approximately 130 daily transits before the conflict to just five on Wednesday, reflects a cautious posture by shipping lines amid an elevated threat environment. Iran has reported explosions following US strikes on its targets, while Iranian officials claim to have struck US military assets in retaliation for attacks on vessels in the Strait. Despite this turmoil, Brent crude oil prices have remained largely steady, though analysts anticipate upward pressure on prices as inventories dwindle.

Qatar has warned Iran it will bear full legal responsibility after three tankers, including a Qatari LNG vessel, were struck within hours in the Strait of Hormuz near Oman. Qatar's foreign ministry called the incident a "serious and explicit violation" of international law. Iran blamed the US for the incident, claiming Washington's efforts to open new routes through the strait breached a memorandum of understanding. Iranian officials stated Iran has a right to impose fees on ships using the waterway, citing the cost of providing security. The Qatari tanker, Al Rekayyat, reported being hit by a drone. Iran rejected proposals from the UK and France to help secure the southern route through the strait.

Shipping traffic through the Strait of Hormuz has significantly decreased following recent attacks on vessels. On Wednesday, only 23 tankers and cargo ships transited the waterway, a sharp drop from 47 the previous week. These attacks occurred after a US-Iran deal aimed at reopening the strait, which had seen increased traffic following its signing. The incidents involved ships using a US-recommended route through Omani waters, prompting Iran to reiterate its claim that its own routes are the only safe option. The US responded with strikes on Iranian targets, accusing Iran of violating the truce, while Iran accused the US of breaching the agreement. This latest violence has caused a halt in traffic on the Omani route, with no ships using it on Wednesday.

Oil prices surged as renewed hostilities between the United States and Iran impacted the Strait of Hormuz. Brent crude rose above $76 a barrel for the first time in two weeks after the US launched strikes on Iran and revoked a temporary waiver of sanctions on Iranian oil. This action followed attacks on three commercial vessels in the Strait of Hormuz, which US, Qatari, and Saudi officials blamed on Iran. US Central Command stated the strikes were to impose costs for targeting commercial shipping. Iran's Deputy Foreign Minister described the sanctions waiver revocation as a violation of a previous memorandum of understanding and warned of decisive actions to safeguard national interests.

US stock markets declined on Wednesday due to ongoing US strikes on Iran and concerns from the Federal Reserve about potentially higher interest rates. President Trump declared the Iran-US ceasefire over, leading to a sharp rise in oil prices, with Brent crude exceeding $80 a barrel. The Dow Jones Industrial Average fell 1.09%, while the S&P 500 experienced a slight loss and the Nasdaq saw a minor gain. Global stock markets also saw declines. The Federal Reserve's meeting minutes indicated that some officials believe interest rates may need to increase to combat rising inflation, which reached a three-year high of 4.2% in May. This situation presents a challenge for the Fed chair, who was nominated by President Trump, who has publicly called for lower interest rates.

Oil prices surged over 3% on Wednesday following U.S. strikes on Iran, which were launched after Iran reportedly attacked three ships in the Strait of Hormuz. Asian shares experienced mixed trading, with markets in Greater China rising while others like Tokyo and Seoul saw declines. South Korea's Kospi index, which had previously soared, fell significantly due to heavy selling in AI-related tech stocks such as Samsung Electronics. Concerns about the high valuations of AI stocks and their potential to justify massive investments in chips and data centers continue to impact market sentiment globally. In other trading, the U.S. dollar strengthened against the Japanese yen.

Following deadly US attacks on Iran that reportedly killed at least one person and caused power outages, sirens sounded across Bahrain and Kuwait, with warnings also issued in Qatar. In Qatar, residents were advised to stay indoors and away from windows until the danger passed. Kuwait's defense ministry reported intercepting drones and missiles, urging citizens to take precautions and noting that any explosions were due to these interceptions. Bahrain's interior ministry also issued an alert. Countries in the Gulf region are preparing for potential retaliatory attacks, as is common after US strikes on Iranian targets. Iran claims to be targeting the sources of attacks on its territory, a stance that has caused contention and anger in Gulf nations who state they are not involved in the conflict.

The United States conducted new strikes on Iran on Wednesday in response to Iranian attacks on ships in the Strait of Hormuz. President Donald Trump ordered the retaliation, stating his expectation for the military escalation to conclude swiftly and indicating a willingness for further discussions. U.S. Central Command (CENTCOM) confirmed the strikes were aimed at diminishing Iran's capacity to jeopardize freedom of navigation in the strait, a vital waterway for global energy transport. The article does not provide further details on the specific nature or targets of these strikes.