The escalation of the war conflict in the Middle East is escalating after the Iranian military confirmed the launch of drone attacks on US military air bases in Kuwait and Bahrain. This action is a direct retaliation for a series of large-scale bombings by the US military on dozens of Islamic Revolutionary Guard Corps (IRGC) targets throughout Iran.
This regional conflict has also begun to spread to the North African region after the Egyptian government confirmed the incident of drone attacks on two ships in the Port of Damietta, Mediterranean Sea. The incident that sparked the fire was the first attack on Egyptian soil since the US-Iranian conflict erupted in late February.
Risk analysts from Verisk Maplecroft warned that the expansion of the range of maritime attacks that now includes the Mediterranean Sea to the Indian Ocean means a new era of threats to international navigation. The strategic facility of the Suez Canal is now considered a potential target that can paralyze the global trade supply chain.
In commodity markets, Brent crude oil prices rebounded to $89.53 a barrel while U.S. WTI rose to $84.04 a barrel. The rise in energy prices was driven by reports in Iranian official media that the IRGC had blocked oil tankers and forced several others to divert in the Strait of Hormuz.
In Washington, President Donald Trump urged the U.S. Congress to include additional tariffs on Iran in a new sanctions bill. Although the volume of U.S.-Iran trade is minimal, the proposal is expected to spark political debate and delay the passage of the sanctions.
