US-Iran Conflict Widens into Broader Fight over Gulf Shipping

The ongoing conflict between the US and Iran has escalated into a broader fight over Gulf and Red Sea shipping, with Saudi oil infrastructure and American military bases also being targeted.

Brent crude prices have surged above $108 per barrel as a result of the tensions, and only seven vessels transited the Strait of Hormuz on Wednesday compared to the 10-day average of 14. The US Navy's ability to operate in the region is becoming increasingly complicated due to the growing number of Iranian missiles getting closer to its warships.

The Houthis have advanced towards Bab al-Mandab, a critical maritime chokepoint linking the Red Sea and Gulf of Aden, putting Saudi Arabia's alternative oil-export infrastructure at risk. This has led to concerns that the region would have fewer ways to compensate for disruption through Hormuz.