Geopolitical conflict in the Middle East and the closure of the Strait of Hormuz have pushed Brent crude near $112, creating market tension. US President Trump warned of attacks on Iranian infrastructure if the Strait is not reopened, but Iran rejected the ultimatum. UBS advises preparing for further escalation as a negotiated settlement appears unlikely in the near term.
US President Trump set a deadline, warning of devastating military action if Iran fails to reach a deal regarding the Strait of Hormuz. The US conducted strikes on key Iranian oil export terminals, while the UN Secretary-General warned against attacks on civilian infrastructure under international law. Iran rejected temporary ceasefire proposals, dismissing the US ultimatums and threats as 'illogical.'