US Advances Strait of Hormuz Reopening

US military operations are underway to reopen the Strait of Hormuz, a critical waterway disrupted by the ongoing war involving the United States, Israel, and Iran. Central Command reported assisting commercial vessels, including a US-flagged merchant ship that transited successfully on Monday.

Iranian sources alleged US strikes on civilian boats, which US officials denied, stating they sank small Iranian vessels and downed missiles and drones during the effort. Oil prices slid but remained elevated, with crude around $105 per barrel and US gasoline at $4.46 per gallon.

Attacks in the region have raised fears of renewed escalation, closing the strait and restricting oil flows.

HSBC profits fell 4% to $9.4 billion in the first quarter, down $100 million from the same period in 2025, amid a $1.3 billion hit from potential loan losses. This included $300 million tied to the Middle East conflict and a $400 million fraud-related charge in its UK investment banking division linked to private credit exposure.

Revenue rose 6% to $18.6 billion, but shares dropped over 5% on the FTSE 100. The bank's chief financial officer explained the fraud involved loans to an unnamed private equity group exposed to private credit, describing it as idiosyncratic with total exposure at $6 billion, small relative to the $1 trillion balance sheet.

She noted enhanced due diligence in response. Separately, Glencore's cobalt output dropped 39% in the first quarter, though sources did not directly link this to the war.

“We’ve always been very mindful of private credit risks. He called for a windfall profits tax and an end to the conflict. The IMF chief warned of worse global GDP outcomes if the war extends into 2027, outlining adverse and severe scenarios. Saudi Arabia urged de-escalation after US-Iran clashes, while several Gulf states condemned Iranian attacks on the UAE. Germany, the UK, and Canada called on Iran to return to talks, labeling the escalation dangerous. Civilian accounts from Iran described widespread fear from strikes hitting various targets.”

The war, dubbed Operation Roaring Lion by Israel and involving US Operation Epic Fury, began February 28 with aims including regime change. Iran's former supreme leader Ayatollah Ali Khamenei was killed in an Israeli strike, along with defense officials.

A ceasefire took effect April 8, but the Pentagon chief stated the 60-day war powers clock is paused, allowing continuation. US intelligence indicates limited new damage to Iran's nuclear program, with no change in the timeline for potential weapon development.

Hezbollah launched mortar shells at Israeli troops, and the Israeli military issued evacuation warnings to Lebanese towns while investigating an unannounced flyover. Drone strikes and fighting escalated in Sudan, though not directly tied to the Middle East conflict.

Airlines canceled hundreds of flights due to doubled jet fuel prices, stranding passengers. An environmental expert discussed how oil fuels such conflicts and who profits, noting the war's shakeup of global energy markets. Iran retaliated against Gulf nations and US bases.

Efforts like US Project Freedom aim to secure shipping, with a Maersk ship transiting under escort. International Monetary Fund projections emphasize uncertainty, with calls for urgent intervention in related humanitarian crises like Sudan's. The war's opacity in sectors like private credit underscores risks for global finance.