US Strikes in Iran Intensify
The U.S. campaign in Iran is escalating, with Defense Secretary Hegseth vowing the "most intense day yet" of strikes reported. The Pentagon confirmed 140 U.S. service members have been injured.
The conflict has already sent shockwaves through global markets, disrupting energy routes and commodity supply chains. Oil prices surged, briefly hitting $120 a barrel before settling around $90, and gasoline prices in the U.S. jumped to $3.48 a gallon. The Strait of Hormuz's effective closure has halted approximately 20% of global petroleum flow, potentially triggering a global recession if the disruption persists beyond 30 days. Some experts believe that a sustained $100 crude price could add 0.6 to 0.7 percentage points to global inflation. Stock markets have reacted with volatility, with Asian markets declining the most due to their dependence on imported energy. Credit markets have also responded, reversing earlier tightening as investors assess the impact of higher energy prices on corporate margins. The U.S. military operations in Iran are estimated to cost taxpayers between $891.4 million to $2 billion per day. This figure may decrease to around $800 million per day after the initial surge of activity subsides.
