The fragile ceasefire between the United States and Iran is showing signs of collapse, raising immediate concerns about the stability of the memorandum of understanding that has underpinned recent de-escalation efforts.
New clashes between United States and Iranian military forces have erupted, casting doubt on the viability of ongoing peace negotiations aimed at resolving the protracted conflict.
The escalation has reignited fears that the Strait of Hormuz could face renewed disruption, a scenario that would severely impact global energy supplies.
Markets are reacting to the heightened geopolitical pressure on trade routes.
The risk premium on energy assets is likely to increase as traders price in the potential for shipping disruptions.
The Strait of Hormuz remains a critical chokepoint for global oil flows, and any further escalation could lead to significant volatility in Brent crude prices and freight rates.