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U.S. Increases Military Presence in Middle East Amid Iran Tensions
President Donald Trump has sent additional troops and warships to the Middle East as tensions with Iran continue, according to an expert. Fortune reported that this buildup could lead to a decision point by mid-April, affecting oil markets and global energy supplies. Markets have shown volatility due to mixed signals from the administration.
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Fortune reported that President Donald Trump has alternated between threatening Iran's economy and stating that the U.S. is in talks with the regime, causing uncertainty for investors. This back-and-forth has led to fluctuations in Wall Street as participants assess the duration of the conflict.
The expert Firas Maksad, managing director for the Middle East and North Africa at Eurasia Group, described this as part of a strategy to manage markets.
U.S. military deployments to the Middle East include additional troops and warships, as stated by Maksad. The USS George H. W. Bush aircraft carrier is heading to the region, and the USS Gerald Ford is set to rejoin after repairs. Several thousand ground troops, such as the 11th Marine Expeditionary Unit, paratroopers from the 82nd Airborne Division, and the 31st MEU, are en route or already present.
On Friday, Iran shot down a U.S. F-15 and A-10 aircraft, resulting in the ejection of the airmen. Two crew members have been recovered, while one remains missing, with search-and-rescue efforts ongoing. Fortune noted that failure to recover the missing airman could potentially escalate the situation further.
Maksad told CNBC that by mid-April, the additional U.S. combat power will be in place, coinciding with Trump's timeline of two to three more weeks for the conflict. At that point, Trump may need to decide whether to escalate or seek de-escalation, considering factors like domestic standing, energy impacts, and Iran's remaining military capabilities.
Despite U.S. and Israeli actions, Iran retains the ability to close the Strait of Hormuz using its missiles and drones.
The stakes involve potential rises in oil prices if the Strait of Hormuz does not reopen soon, leading to physical shortages. Countries in Asia, which rely heavily on energy from the Persian Gulf, have begun rationing supplies. Markets rallied recently on hopes of a quick resolution, but ongoing tensions could disrupt global energy markets and affect economies worldwide.
