US Takes Steps to Reopen Strait of Hormuz

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.”