Iran has warned the United States against any military action in the Strait of Hormuz, following reports of a US operation to reopen the waterway. The warning came after the US military said it sank six Iranian boats targeting civilian ships on Monday. Iran's military central command claimed to have struck a US frigate with two missiles, a claim denied by US Central Command.
US President Donald Trump threatened to blow Iran 'off the face of the earth' if it attacked US vessels. The US military operation, named Project Freedom, saw two American-flagged merchant ships successfully transit the strait on Monday. Meanwhile, the United Arab Emirates reported repeated attacks from Iran, including a fire at an oil facility in Fujairah that wounded three Indian nationals.
Japan took delivery of its first stockpile of oil from Russia since the closure of the Strait of Hormuz at the start of the Iran war. A tanker carrying crude from the Sakhalin-2 project reached the coast of Imabari in western Japan on Monday, according to reports. Japan, which depends on the Middle East for about 95% of its oil imports, has sought to diversify energy sources since the strait was effectively shut in late February.
Global stock markets fell on Tuesday amid rising Middle East tensions. The International Monetary Fund warned that inflation is picking up and the global economy could face a 'much worse outcome' if the war drags into 2027 and oil prices hit about $125 a barrel. The UK and Saudi Arabia called for de-escalation, with British PM Keir Starmer urging Iran to engage meaningfully in negotiations to ensure the ceasefire endures.
