US–Iran kinetic escalation around Hormuz
The day arc: Trump floated limited CENTCOM strikes Monday evening; by 00:11–01:55 Cairo an Iranian tanker incident and UKMTO reports of three projectiles hitting an outbound tanker emerged; at ~15:01 two VLCCs carrying 2M barrels of Saudi crude each (Sidr, Senegal Prosperity) were struck near Khasab; Iran declared it would not return to the US MOU; at ~19:28 CENTCOM confirmed strikes on IRGC targets around Hormuz began at 12pm ET, following alleged Iranian attempts to deploy sea mines and missiles at US bases in Jordan (eight intercepted). Trump warned of stronger strikes if Iran retaliates. Hormuz vessel crossings fell 50% in one day, the US has redirected 84 vessels under blockade, and Iran has shipped no significant crude through the strait for ~7 weeks. Bessent threatened bank sanctions on Iran this week and next and said Hormuz will be "bypassed in 2 years"; Qatar and Oman are mediating. Confirmed facts vs. claims: the strikes are officially confirmed; some blast reports and Iran's "control" of the strait (Ghalibaf) are contested.
- Mechanism
- Supply-risk premium lifts crude and refined-product prices directly into inflation expectations, forcing rate-hike pricing and compressing equity multiples.
Entities Brent/WTI crude · diesel refining margins (record >$106/bbl) · energy equities · Treasury yields · gold (notably falling ~2% to ~$4 · 360 despite escalation) · equities broadly.