The United States' war in Iran has cost $37.5 billion so far, U.S. Defense Secretary Pete Hegseth said on Tuesday, an increase of nearly $8 billion since the last public estimate. Hegseth told lawmakers at a hearing in Washington that the figure included certain aspects of the war as well as anticipated costs through September 30. It ⁠was unclear how the Pentagon arrived at the $37.5 billion figure. A source told Reuters in March that ⁠President Donald Trump's ​administration estimated the [Read more]

U.S. President Donald Trump on Tuesday said the United States would respond if Yemen's Iran-aligned Houthi movement follows through on its threat to impose a blockade on commercial shipping in the Red Sea, saying that if the group takes action, the United States "will just have to take care of business." (Reporting By Nandita Bose and Jarrett Renshaw) [Read more]

Two oil tankers loaded with Saudi crude for China and India made U-turns in the Red Sea on Tuesday, heading towards the Suez Canal rather than braving the Yemeni coast at the sea's mouth following a warning from Yemen's Iran-aligned Houthi militia. The changes in direction by the ships, the Xin Long Yang and the Rodos, suggest a second potential disruption to a major shipping route that could compound the shortfall in global energy markets caused by the closure of the Strait of Hormuz. The [Read more]

Crude oil exports from Saudi Arabia fell for a third straight month in May to a record low, data from the Joint Organizations Data Initiative (JODI) showed on Tuesday, with the U.S.-Iran conflict disrupting shipments across the Gulf. Exports fell to about 3.434 million barrels per day in May, from 3.986 million bpd in April. The country's crude oil production stood at 6.560 million bpd in May, rebounding from a record low of 6.316 million bpd hit in April. The JODI data for Saudi [Read more]

The dark cloud of Middle East war is once again looming over financial markets. While the shock of the initial U.S.-Israeli strikes on Iran is unlikely to be replicated, barring an alarming twist like a U.S. ground invasion, geopolitical risk is back on investors' radar. Relief from falling oil prices and easing inflation pressures following the US-Iran ceasefire struck in April has evaporated. As flimsy as that ceasefire was, investors took it as a green light to rebuild exposure to risk assets [Read more]

U.S. Treasury Secretary Scott Bessent said on Tuesday that there has been a substantial decrease in China's purchases of Iranian oil. "We have sanctioned Chinese... so-called teapot refineries, which are the private refineries, and we've seen a substantial decrease in their purchases of Iranian oil," Bessent said in an interview with Fox Business Network. "The Chinese, in general, because of the prices and because they have a very large strategic petroleum reserve, have dropped their [Read more]

Shipping companies should not load or discharge cargo at Saudi Arabian ports and such activity may result in being targeted "in any location" by Yemen's Iran-aligned Houthi militia, according to an email sent to companies by the Houthis. The Houthis on Monday declared a naval blockade against Saudi Arabia, opening a potential new front against the United States in its war with Iran and raising the threat to global energy supplies and trade beyond the Gulf. "Vessels are banned from loading [Read more]