Hormuz crisis: attacks, airstrikes, and route closures

Iran attacked a cargo ship in Hormuz, prompting US airstrikes and Iran's closure of the channel. Markets expect more tensions and a possible airspace shutdown.

Tensions in the Strait of Hormuz have escalated following Iran's attack on the Singapore-flagged cargo ship Ever Lovely, defying a US ultimatum and violating a ceasefire agreement signed in June. In response, the United States launched a third round of airstrikes, targeting approximately 140 Iranian military facilities as retaliation for attacks on commercial vessels. Meanwhile, the Cyprus-flagged container ship M/V GFS Galaxy was immobilized after a fire broke out and a crew member went missing. The Islamic Revolutionary Guard Corps subsequently announced the indefinite closure of the channel to all vessel traffic, further heightening regional instability. Additionally, a US strike hit a hill near the Kangan highway, potentially impacting strategic radar and air defense sites. Markets remain skeptical about the normalization of maritime traffic before August 31, and concerns are rising over a possible total closure of Iranian airspace before July 31.