Crude oil prices rose sharply after a direct military confrontation between US and Iranian forces near the Strait of Hormuz. US Central Command reported launching strikes on missile and drone facilities in Iran following attacks on three American warships in the region. While no damage was sustained to the vessels, the incident has disrupted the fragile ceasefire President Trump claims remains active. The escalation has heightened concerns over supply security in one of the world’s most critical maritime chokepoints.
In parallel, the UK faces political shifts as local election results indicate strong performance by Nigel Farage’s Reform UK. These developments—military tension in the Middle East and domestic political change in the UK—are contributing to uncertainty in global financial markets. Traders are reacting cautiously as markets open, weighing risks related to energy supply disruptions and geopolitical instability.