The United States conducted military strikes against Iranian targets for the second time this week, while Kuwait reported intercepting missile and drone threats, underscoring the fragility of the current ceasefire and the difficulty of reaching a peace agreement that would restore global energy flows.
Defensive actions near the Strait of Hormuz
According to a U.S. official, American forces shot down four Iranian drones that were fired at a commercial vessel and subsequently hit a launch unit near the Strait of Hormuz. The official described these attacks as defensive in nature and stated that the ceasefire remains in effect. In response, Iran targeted the U.S. base from which the strikes originated, as reported by state-run Press TV. Kuwait announced that any explosions heard were the result of its air defense systems intercepting hostile targets.
Trump's stance on the Strait of Hormuz
Earlier, U.S. President Donald Trump declared that no single nation would control the Strait of Hormuz, which has become a major obstacle in resolving the conflict. The effective closure of the waterway since the war began in late February has reduced approximately one-fifth of the world's oil and liquefied natural gas supplies, causing prices to surge and inflation to rise, threatening global economic growth.
Speaking at the White House, Trump stated, "They're negotiating on fumes," and added, "Maybe we have to go back and finish it," without clarifying whether this implied further military action. He emphasized that the strait is international waters and must remain open to everyone, with the U.S. overseeing its security. However, he did not specify what steps the U.S. would take to ensure free transit.
U.S. Treasury actions and Iranian demands
The U.S. Treasury announced actions against Iran's Persian Gulf Strait Authority, accusing it of attempting to monetize its campaign of state-sponsored terror by extorting vessels transiting the Strait of Hormuz. Iran has expanded its claimed jurisdiction and imposed new rules for vessels, including demands for payments of up to US$2 million for safe passage.
Market impact
Brent crude oil prices rose as much as four percent to US$98.20 per barrel on Thursday. Although prices have retreated from a high of US$126 last month, they remain about a third higher than before the war. Benchmark European natural gas futures are approximately 50 percent higher. The MSCI All Country World Index, a broad gauge of global equities, retreated from a record high, with futures indicating further losses in the U.S. and Europe.
Challenges to a peace accord
Trump has alternately instituted a blockade of Iranian ports, called for allies to help open the strait, and threatened to resume major airstrikes against Iran, all with limited success. He continues to suggest that a peace accord is near, but faces competing pressures: Iranian demands for an end to attacks and financial relief, and pressure from Republican hawks to avoid a bad deal. These dynamics have kept an agreement out of reach. Additionally, Trump's past criticisms of similar deals negotiated by his predecessors complicate the path to a resolution.
