Iran and Israel said on Monday they had halted attacks against each other following an appeal from US President Donald Trump, while US forces simultaneously escalated pressure on Tehran by disabling an oil tanker attempting to reach an Iranian port in defiance of Washington's naval blockade.
Israel launched strikes against military targets in western and central Iran early Monday, defying reported calls from US President Donald Trump for Prime Minister Benjamin Netanyahu to refrain from retaliatory action following an Iranian missile attack on Israel.
A ceasefire agreement between Israel and Lebanon has raised hopes of a broader diplomatic breakthrough that could help bring an end to the ongoing US-Israeli conflict with Iran, even as conflicting signals emerged over the state of negotiations between Washington and Tehran.
A Reuters survey showed that oil output Opec fell to a more than 20-year low in April, dropping 830,000 barrels per day to 20.04 million bpd as Strait of Hormuz disruptions linked to the US-Israeli conflict with Iran hit exports.
Confusion over the scope of the newly announced US-Iran ceasefire and Israel's military campaign in Lebanon continued to disrupt shipping through the Strait of Hormuz, with industry operators adopting a cautious wait-and-see approach.
The sharp rise in global air cargo rates following the outbreak of war involving the US, Israel and Iran is showing signs of slowing, as a fragile ceasefire allows capacity to gradually return to Middle East markets. The recovery was led by Gulf markets, where the capacity shortfall narrowed to 46% from 53%.
Conflict between the US, Israel and Iran has disrupted Strait of Hormuz shipping, exposing limited export alternatives. Existing pipelines offer partial relief, while proposed routes face major political, security and financial challenges.
The Iran–US–Israel conflict is driving the worst global energy crisis, IEA head Fatih Birol said, calling it the biggest in history, worsened by Russia-related energy shocks and supply pressures global.
US delegation led by Vice President JD Vance met directly with Iranian officials in Pakistan on Saturday — a significant moment for two countries that have typically held high-level talks through intermediaries, a CNN report said.
Sudan is emerging as an unlikely economic beneficiary of the geopolitical upheaval triggered by the Israel-US war on Iran, as disruptions in the Strait of Hormuz force Gulf states to rethink supply chains and food security strategies now more than ever, according to an industry expert.
