The United States initiated a fresh round of airstrikes against Iran on July 12, marking the third such action within a week. This escalation followed the Islamic Revolutionary Guard Corps (IRGC) attacking a Cyprus-flagged container ship, the M/V GFS Galaxy, in the Strait of Hormuz and subsequently declaring the vital waterway closed to all traffic. President Donald Trump declared the fragile ceasefire, which was part of an interim agreement to end the war, to be "over," stating these strikes were retribution for Iranian attacks on ships and warning of further action if Iran retaliated.
The Strait of Hormuz is a crucial global chokepoint, through which approximately one-fifth of the world's oil and natural gas shipments typically pass. Iran's closure of the strait forces tankers to reroute near Oman, leading to increased freight costs and a risk of oil price spikes. The US Central Command (CENTCOM) reported hitting over 160 targets across southern Iran in response to the IRGC's actions, which included a warning shot that struck the M/V GFS Galaxy, causing significant engine room damage, a fire on board, and leaving one civilian crew member missing.
Financial markets reacted with concern to the renewed conflict. After declining for two months, Brent crude, the international oil benchmark, initially surged above $80 a barrel to a two-week high, though it later retreated to below $78 a barrel. The International Monetary Fund (IMF) warned that the renewed regional conflict could drive up inflation, disrupt global supply chains, and negatively impact financial markets. Senior US officials are demanding that Iran publicly commit to halting all attacks on commercial vessels and keeping every channel in the Strait of Hormuz open and toll-free to ensure free passage.
