Iran Strikes Paused: Red Sea & US-Israel Tensions Rise

Donald Trump said he would extend his pause on threats to attack Iranian energy infrastructure for another 10 days, citing ongoing talks with Tehran, as oil prices dropped and concerns mounted over potential disruptions to global shipping.

Key Developments

• Trump Extends Pause on Iran Strikes: The US president announced a further 10-day extension to his pause on potential attacks on Iran’s energy infrastructure, claiming talks with Tehran are “very well” underway. He had previously threatened strikes if Iran did not reopen the Strait of Hormuz.
• Oil Prices Fall: The price of Brent crude decreased following Trump’s latest announcement, after earlier reaching a high of roughly $108 a barrel.
• Yemen’s Houthis Downplay Concerns: Yemen’s Houthis stated there is no need to worry about potential attacks on shipping in the Red Sea, even if Trump follows through on threats to seize Iran’s Kharg Island.
• US and Iran Disagree on Negotiations: While Trump claimed Iran is “begging to make a deal,” Tehran dismissed his 15-point ceasefire plan.
• Trump Rejects Exit Ramp Claims: The US president refuted reports that he is seeking a way to de-escalate the conflict, despite soaring oil prices and political pressure.
• US Proposal Deemed “Unfair” by Iran: A senior Iranian official described a US proposal for ending the fighting as “one-sided and unfair.”
• Iran Allows Tanker Passage: Trump stated Iran is allowing some oil tankers through the Strait of Hormuz as a sign of good faith.
• Pentagon Considers Troop Increase: The Pentagon is reportedly considering sending up to 10,000 additional ground troops to the Middle East.
• IDF Chief Warns of Military Strain: The Israel Defence Forces’ chief of staff warned the military faces a potential collapse due to increasing demands and manpower shortages.
• Thai Cargo Ship Runs Aground: A Thai-flagged cargo ship, previously hit by unknown projectiles in the Strait of Hormuz, has run aground off Iran’s Qeshm Island.

The Iranian Revolutionary Guard’s naval commander, Alireza Tangsiri, who was killed in an Israeli airstrike on Thursday, was described as a veteran hardliner who understood the strategic importance of the Strait of Hormuz.

Lebanese media reported that an Israeli strike hit Beirut’s southern suburbs early on Friday, with several explosions heard in the Hezbollah stronghold.

World Trade Organisation chief Ngozi Okonjo-Iweala has warned the global trading system is experiencing the “worst disruptions in the past 80 years”.

South Korean shares have fallen more than 3% today, and Japan’s Nikkei share average is also down, as Asian markets react to the ongoing conflict. Vietnam’s trade ministry has temporarily waived an environmental tax on fuel to cut soaring prices.