WeTrade Perspective: US-Iran Persian Gulf War and Hormuz Crisis

Direct military confrontation between the US and Iran erupted again in the Persian Gulf on Monday, as the two sides engaged in a fierce battle over blockade and anti-blockade over the Strait of Hormuz, the world's key energy transportation route. The conflict not only shook the already fragile ceasefire agreement since April, but also put the entire Gulf region under the shadow of all-out war again. By the end of the day, several merchant ships reported explosions or fires, an important oil port in the United Arab Emirates was hit by Iranian missiles, and the US military claimed to have sunk six small Iranian military vessels. The conflicting reports on the battlefield situation made it difficult for the outside world to grasp the complete situation in the strait.

US launches'Operation Freedom ': forcibly dredging maritime life infras

The immediate trigger for the military escalation was the president's announcement of a new initiative, known as Operation Freedom, to help oil tankers and other ships stranded by the war to pass through the Strait of Hormuz, according to his statement.

Since the United States and Israel began their attacks on Iran in February this year, this key energy trade route has been almost completely shut down, and the war has killed thousands of people there.

However, the United States did not disclose any specific details when announcing the operation, including the scope of the operation, the deployment of troops, and the expected timeline.

It is worth noting that the start of the operation has come two days after the legal deadline for the president to obtain congressional authorization to go to war. Although the president had previously informed Congress that the war was "over" and used this as a reason to claim that the deadline was no longer meaningful, this claim was publicly questioned by several lawmakers.

The counterproductive initial effect: angering Iran rather than clearing the waterway

From the initial effect, "freedom of action" did not bring about the surge in merchant ship traffic as the United States hoped. Instead, it quickly angered the Iranian side and prompted it to fulfill its promise to demonstrate by force.

Iran's Islamic Revolutionary Guard Corps has made it clear that the waterway can be cleared only with its permission. In response to the US military action, Iran fired warning shots at US warships approaching the strait and released a map claiming that the area under its control has been greatly expanded.

The map shows that Iran claims control well beyond the Strait of Hormuz itself, and even covers a large part of the United Arab Emirates' coastline. Major shipping companies have said in the wake of the incident that they will most likely not take the risk of trying to cross the strait until a clear ceasefire is reached between the two sides. Meanwhile, marine insurance costs have soared on news of the conflict.

Iran retaliates fiercely: missiles hit UAE oil port

Iran's military response extends beyond the maritime standoff to neighbouring UAE. The Fujairah oil port, outside the Strait of Hormuz, is a prime target of the Iranian attack. The port is strategically valuable because of its unique location, making it one of the few routes through which Middle Eastern oil can be exported without passing through the Strait of Hormuz. Iranian state television confirmed that the attack on the UAE by military officials was a response to "American adventurism".

The UAE government said the Iranian missile and drone attacks marked a serious escalation and explicitly reserved the right to take counter-action. The UAE authorities have ordered distance learning for students due to security concerns.

Separately, the Emirates National Oil Company confirmed that one of its empty tankers had been attacked by Iranian drones, while the UK's maritime security agency reported that two vessels had been attacked off the UAE's coast.

Contradictory reports and merchant ship attacks: the true situation in the fog

During the clash that day, the reports released by all parties were full of contradictions and uncertainties. The U.S. military said that two American merchant ships had successfully passed through the Strait of Hormuz with the support of Navy guided missile destroyers. The global shipping giant Maersk also confirmed that the U.S.-flagged Soyuz Fairfax sailed out of the Persian Gulf on Monday under the escort of the U.S. military.

However, the Iranians strongly denied that any ships had passed through the strait in recent hours. Regarding the military exchange of fire, the US commander in the region said that the US fleet had sunk six small Iranian ships, but he did not provide specific details. He only said that Iranian forces were "strongly advised" to stay away from US assets on mission, which Iran also denied.

At the same time, a number of merchant ships have suffered accidents during the voyage. South Korea reported that one of its merchant ships, the HMM Namu, had an engine room explosion and caused a fire while passing through the strait. Fortunately, there were no casualties on board, but a spokesperson said it was unclear whether the fire was caused by an external attack or an internal failure. International oil prices surged more than 5 percent in volatile trading on reports of increased Iranian attacks.

The Faint Dawn of Peace Talks: Diplomatic Attempts in a Military Quagmire

Despite the sharp escalation of the military confrontation, diplomatic channels did not appear to be completely closed. Iran's foreign minister said after the incident that Monday's clashes had proved that the crisis could not be resolved by military means. He revealed that peace talks, mediated by Pakistan, were making progress, while warning the United States and the United Arab Emirates not to be dragged into a "quagmire" by "ulterior motives."

"Operation Freedom is Operation Stalemate," he said bluntly on social media, four weeks after the United States and Israel suspended their bombing campaign against Iran and officials from both sides held a round of face-to-face peace talks, but attempts to arrange further meetings have since failed. Iranian state media reported on Sunday that the United States had conveyed its response to Iran's 14-point proposal through Pakistan and that Iran was considering it.

Iran's proposal, which is understood to delay discussions on its nuclear energy and research programmes until an agreement is reached to end the war and resolve the shipping standoff, is likely to be rejected, although the president said at the weekend that he was still studying it. The latest US intelligence shows that Iran's nuclear programme has suffered limited damage since the start of the war, and Washington's goal is to eliminate Iran's stockpile of enriched uranium to prevent it from being further processed to the point where it can be used to make a nuclear weapon.

edit summary

The military conflict between the United States and Iran over control of the Strait of Hormuz escalated abruptly on Monday. The "freedom operation" launched by the United States was intended to force the restoration of shipping lanes, but it quickly triggered an armed response from Iran. The attack on the oil port of the United Arab Emirates, the distress of several merchant ships, and the international oil price soared by more than 5%. The two sides' diametrically opposed descriptions of the key battle situation made it difficult to verify the full picture of the incident. The conflict broke the ceasefire that has lasted only four weeks and exposed the limitations of military pressure in resolving the standoff in the Strait. Despite Iranian signals that peace talks are still advancing, the diplomatic outlook remains bleak due to the tough stance of the United States on Iran's nuclear program and the growing mutual distrust between the two sides. Judging from the market reaction, investors' concerns about the security of energy transportation have increased significantly. The follow-up development of the incident will highly depend on the next military actions and political decisions of both sides, and the security situation in the Strait of Hormuz has entered a highly uncertain stage.

Frequently Asked Questions

Question 1: What is "freedom of action" and what is the immediate purpose of the US initiative?

A. Operation Freedom, a military measure announced by the US president on Monday to force stranded oil tankers and merchant ships through the Strait of Hormuz, which has been virtually closed since the US-Israeli attack on Iran in February that year, severely affecting global energy transportation, is intended to restore access to the shipping lanes, but the details of the operation have not been made public.

Question 2: What military countermeasures did Iran take that day?

A. Iran retaliated on multiple levels. First, it fired warning shots at American warships as they approached the strait. Second, it attacked the Fujairah oil port in the United Arab Emirates with drones and missiles, and attacked an Emirati oil tanker. In addition, Iran issued maps declaring that its maritime control had been greatly expanded to cover part of the UAE coastline, and issued warnings to merchant ships that they must coordinate with Iran's armed forces.

Question 3: What are the main contradictions between the two sides' reports on the battle situation that day?

A. There are two main points of contention. The US military says it has sunk six small Iranian military vessels and escorted two US commercial vessels through the strait. Maersk, the shipping company, has also confirmed the passage of one of the vessels. But Iran firmly denies that any ships have passed through the strait or that any of its own ships have been sunk. Due to the conflicting claims between the two sides, it is difficult for the outside world to verify the true situation of the battle.

What role did the UAE play in this conflict and why was it targeted by Iran?

A. Iran has made clear that the attack on the United Arab Emirates, which hosts large American military bases and is a key American military ally in the Gulf, is a response to "American adventurism." The port of Fujairah, which lies outside the Strait of Hormuz, is one of the few key channels through which oil can be exported without passing through the strait, making it a strategic target for Iran to attack in order to weaken the energy export capabilities of the United States and its allies.

Question 5: What was the state of the peace talks between the United States and Iran when the conflict broke out?

A. Just four weeks before the conflict broke out, the United States and Israel suspended their bombing of Iran, and the two sides held a round of face-to-face peace talks, but the follow-up meeting arrangement failed. Iran put forward a 14-point proposal to postpone nuclear discussions until the shipping standoff was resolved. The United States relayed a response through Pakistan, and Iran is considering it. The president said he may reject the proposal. Although Iran's foreign minister said there was progress in the talks, the military escalation shows that the peace process is extremely fragile.