Ukraine carried out an attack on an Iranian merchant ship, sparking a debate in Tehran over potential retaliation. Iranian leaders are weighing the risks between reinforcing deterrence and triggering an escalation into a broader conflict involving Europe and NATO. This attack raises concerns about potential restrictions in the Strait of Hormuz, a critical chokepoint for global oil shipments. Market participants are closely watching the situation, with the probability of Strait of Hormuz traffic returning to normal by the end of August having decreased.
Source: Read the original article
