Iran said it targeted the US Fifth Fleet in Bahrain in the latest exchange of strikes, as President Trump imposed a fresh naval blockade on the strait of Hormuz and urged Tehran to negotiate.
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Key facts
- Iran said it targeted the US Fifth Fleet in Bahrain in the latest exchange of strikes.
- The US imposed a fresh naval blockade on the strait of Hormuz.
- Trump said Iran has to 'get to the table and negotiate' and again threatened to strike Iran's power plants.
- Oil prices rose to their highest point since the two countries agreed a peace deal.
- Economists warned resurgent oil prices could cement a fourth Australian interest rate rise this year if the conflict is not resolved within a week.
Iran said it targeted the US Fifth Fleet based in Bahrain in the latest exchange of strikes between the two countries, according to the Guardian’s live coverage of the crisis.
The developments came as US President Donald Trump imposed a fresh naval blockade on the strait of Hormuz and pressed Iran to return to negotiations. Trump said Iran has to ‘get to the table and negotiate’ amid the ongoing impasse over the strait.
Trump also again threatened to strike Iran’s power plants as the standoff continued. US missile strikes on Iran and the announcement of the new maritime blockade have raised tensions between the two sides.
The renewed conflict has pushed oil and fuel prices higher. According to the Guardian, US missile strikes on Iran and Trump’s blockade announcement lifted oil prices to their highest point in the month since the two countries agreed to a peace deal.
Economists warned that resurgent oil and fuel prices could cement a fourth interest rate rise in Australia this year if Trump’s renewed conflict with Iran is not resolved within a week.
The exchange marks a sharp deterioration in relations following the earlier peace deal between Washington and Tehran, with the strait of Hormuz once again at the centre of the dispute.
Why it matters
The strait of Hormuz is a critical route for global oil shipments, so renewed conflict and a US blockade there can push fuel prices higher worldwide. Rising oil costs feed directly into inflation and interest-rate decisions, meaning the standoff could affect household budgets far beyond the Middle East.
Frequently asked questions
What did Iran say it targeted?
Iran said it targeted the US Fifth Fleet based in Bahrain in the latest exchange of strikes, according to the Guardian.
What action has Trump taken on the strait of Hormuz?
President Trump imposed a fresh naval blockade on the strait of Hormuz and said Iran has to get to the table and negotiate. He also again threatened to strike Iran's power plants.
How could this affect interest rates in Australia?
Economists warned that resurgent oil and fuel prices could cement a fourth interest rate rise in Australia this year if the conflict is not resolved within a week.
Timeline
- US Fifth Fleet targeted in Bahrain, says Iran, in latest exchange of strikes – as it happened
The Guardian World: US president says Iran has to ‘get to the table and negotiate’ as US imposes fresh naval blockade on strait of Hormuz Trump again threatens to strike Iran’s power plants amid impasse over strait of Hormuz Resurgent oil and fuel prices could cement a fourth interest rate rise in A