Middle East Tensions Worsen Again... US-Iran Strait of Hormuz Clash Threatens Truce Collapse

Strait of Hormuz

As soon as the US launched 'Project Freedom' to facilitate the escape of vessels trapped in the Strait of Hormuz, clashes erupted, putting the truce on the brink of collapse.

With peace talks deadlocked and an unstable truce ongoing, a new confrontation between the warring parties and military exchanges erupted, causing tensions in the Middle East, which controls the global energy market, to rapidly worsen again.

◇ US and Iran Exchange Military Attacks on First Day of US 'Project Freedom'

According to foreign reports, the US military announced that it used force on the first day of 'Project Freedom' implementation, April 4 (local time), to ensure the safe passage of merchant ships in the Strait of Hormuz.

This explains that actual clashes occurred as the US guided merchant ships through the Strait of Hormuz and Iran attempted to block them.

US Central Command, which oversees the war with Iran, announced that it sank Iranian speedboats that were threatening merchant ships using Apache helicopters.

Central Command stated that US warships intercepted cruise missiles and suicide drones launched by Iran at ships in the Strait of Hormuz.

The US announced that it would launch 'Project Freedom' to assist the escape of ships trapped in the Strait of Hormuz from that morning and immediately put it into action.

Iran, claiming control over the Strait of Hormuz, warned that it would not rule out military action against the US plan, and indeed used force.

Previously, Iran's Islamic Revolutionary Guard Corps (IRGC) announced that it had strengthened control over the Strait of Hormuz and unveiled a new map expanding its control zone by blocking the entire shipping lane.

This means that if foreign forces, especially the US military, attempt to enter or approach this area, they will be repelled using military force.

However, the US defines the project to liberate ships trapped in the Strait of Hormuz as a humanitarian measure and intends to continue the operation.

Due to this standoff and clashes between the US and Iran, hopes for an end to the war are fading, and there are growing concerns that the conflict is entering a dangerous new phase where it could escalate.

Fujairah Port, UAE

◇ Neighboring Gulf States Attacked Again... Mysterious Explosion on a South Korean Vessel

Iran's attacks on the Gulf region, which had ceased for about a month since the truce came into effect on the 8th of last month, have resumed.

The UAE Ministry of Defense announced on the 4th that it had intercepted a total of 19 missiles and drones believed to have been launched from Iran.

This attack also caused a fire at the Fujairah petrochemical complex, a major UAE energy facility.

According to the map of shipping control lines in the Strait of Hormuz released by the Revolutionary Guard that day, the 'control range' of the strait has been extended further south than before, reaching near Fujairah.

Fujairah has an oil export terminal that can bypass the Strait of Hormuz, and concerns spread that the entire oil supply chain could be paralyzed by Iran's expanding influence.

An explosion of unconfirmed cause also occurred on a vessel operated by a South Korean shipping company in the Strait of Hormuz.

According to the South Korean Ministry of Foreign Affairs, an explosion and fire occurred on one vessel (HMM NAMU, Panamanian flag) operated by a South Korean shipping company, which was anchored in the waters near the UAE inside the Strait of Hormuz around 8:40 PM KST on the 4th. As of now, no casualties have been reported.

President Trump claimed that "Iran fired several times at unrelated countries, including a South Korean cargo ship, in connection with vessel movement issues related to 'Project Freedom' operations." He then called for South Korea's participation in the US operation in the Strait of Hormuz.

The South Korean government has begun verifying the facts amid the possibility that the vessel may have been hit during the US military intervention in the Strait of Hormuz and Iran's response.

◇ Peace Talks Stalled... Little Chance of Progress Due to No Common Ground on Nuclear Issues, Hormuz, etc.

The United States and Iran continue to work towards peace talks, repeatedly presenting revised peace proposals behind the scenes, but it is evident that they are making no progress.

When the US first presented a 9-point peace proposal, Iran delivered a 14-point revised proposal to the US.

President Trump stated in an interview with Israeli public broadcaster Kan the previous day, "We reviewed it, but it is unacceptable."

Esmail Baghaei, spokesperson for the Iranian Ministry of Foreign Affairs, also said at a press conference that day, "We have received the US response and are still reviewing it," adding that "the US demands are excessive and unreasonable."

Looking at the demands reported by foreign media, it is observed that the US and Iran have not narrowed their differences on the nuclear program and control over the Strait of Hormuz.

The Trump administration wants Iran to abandon its nuclear program, which is directly linked to the justification for a swift declaration of victory, but it is reportedly being ignored.

Iran maintains the position that nuclear negotiations should proceed as the next step after concluding negotiations on Hormuz control, and is even demanding war reparations from the US as a condition for agreement.

◇ Oil Prices Soar and Stock Market Suffers Frostbite Amid Escalation Concerns from Hormuz Standoff

As peace talks remain deadlocked and the truce between the US and Iran becomes precarious, international oil prices surged due to concerns about supply shortages.

On this day, the closing price of July Brent crude futures on the ICE Futures Exchange rose by 5.80% from the previous session to $114.44 per barrel.

The closing price of June delivery of West Texas Intermediate (WTI) crude futures on the New York Mercantile Exchange also rose by 4.39% from the previous session to $106.42 per barrel.

If the war expands, a scenario unfolds where the global economy faces a series of shocks, starting with the energy market.

Reflecting this instability, the US stock market, which had been on a continuous streak of record highs, saw the Dow Jones Industrial Average (-1.13%), the S&P 500 index (-0.41%), and the Nasdaq Composite index (-0.19%) all close lower today.