US–Israel Strikes, Iran Retaliates: Hormuz Shutdown Raises Stakes for Middle East and the World

Iran Bombed (Courtesy:BT)

San Francisco, March 3, 2026

Savanna Radio News Desk

The United States and Israel launched coordinated strikes on Iran, killing Supreme Leader Ayatollah Ali Khamenei and escalating tensions across the Middle East. Iran has retaliated with missile and drone attacks on US bases, Israeli targets, and through proxies like Hezbollah, while declaring the Strait of Hormuz closed to shipping.

Joint US-Israeli airstrikes under Operation Epic Fury targeted Iranian military sites, nuclear facilities, and high-level figures, confirming Khamenei’s death on February 28. President Donald Trump described the action as opening a path for Iranians to reclaim their country, amid reports of several other senior officials killed. A power vacuum now grips Tehran, with potential successors like Hassan Khomeini or Mojtaba Khamenei in discussion, sparking an urgent leadership election process.

Iran’s Revolutionary Guards (IRGC) and allies have intensified attacks, including barrages on US bases in the Gulf and Israeli cities, killing at least six US service members. Hezbollah launched rockets from Lebanon into Israel, prompting Israeli counterstrikes in Beirut that killed over 50 people. Strikes have hit UAE, Qatar, Bahrain, and even Cyprus, expanding the conflict beyond direct US-Iran lines.

Strait of Hormuz Shutdown

IRGC warnings have effectively shut down the Strait, a chokepoint for 20% of global oil trade, with tanker traffic dropping 70% and at least three vessels struck. Ships received radio threats prohibiting passage, leading firms like Maersk to suspend operations and reroute around Africa. Pre-strike oil stockpiling by Iran and Saudi Arabia cushioned some impact, but disruptions persist. The closure threatens Gulf economies like Saudi Arabia, UAE, Iraq, and Qatar, forcing OPEC+ to boost output by 206,000 barrels daily. Proxy wars intensify in Lebanon, Yemen, and Syria, risking broader Arab involvement and humanitarian crises. Iran’s leadership crisis could spark internal unrest or protests, as seen in recent diaspora actions.

Oil prices surged 10-13% to $82 per barrel, with forecasts up to $100 if prolonged, hitting importers like China (17% of imports affected), India, Europe, and the US. Rerouting adds weeks and costs to shipping, stoking inflation and recession fears worldwide. Financial markets brace for volatility, with war-risk insurance premiums quadrupling.