US and Israel Continue Strikes on Iran as Strait of Hormuz Closure Triggers Global Energy Crisis
The United States and Israel have continued their military campaign against Iran, with US B-52 bombers flying over Tehran and the USS George HW Bush carrier strike group deployed to the region, as the closure of the Strait of Hormuz triggers a global energy crisis with far-reaching consequences for the UK and world economy.
The conflict, which began on 28 February 2026 when the US and Israel launched coordinated strikes against Iran targeting its nuclear programme, ballistic missile capabilities, and leadership, has entered its second month with no clear end in sight. The death of Supreme Leader Ali Khamenei in the initial strikes has led to the election of Mojtaba Khamenei as his successor, who has reaffirmed Iran's commitment to the conflict.
Military Situation
US B-52 bombers have been conducting operations over Iran, while the USS George HW Bush and three destroyers — comprising over 6,000 personnel — are deployed in the region. Iran's state broadcaster IRIB has reported attacks on northern, eastern, and central Tehran. Iran's foreign minister has stated the country is prepared for "at least six months" of war.
Iran and its allied groups have launched counter-strikes against Israel, US military bases, and regional allies. Hezbollah has launched rocket and drone strikes against Israel, leading to intensified Israeli bombing in Lebanon. Houthi rebels in Yemen have launched ballistic missiles towards southern Israel in joint operations with Iran and Hezbollah. Drone attacks attributed to Iran or its proxies have struck Kuwait International Airport and a business facility in Bahrain.
The Strait of Hormuz Crisis
The Strait of Hormuz — through which approximately 20% of the world's oil passes — has been effectively closed, with almost all non-Iranian shipping ceasing. Iran's parliamentary committee has approved a plan to impose tolls on the strait. QatarEnergy has halted production after its LNG hub sustained "extensive damage" from Iranian missiles, further disrupting global energy supplies.
US President Donald Trump has threatened extensive attacks on Iranian energy sites if Iran does not reopen the Strait of Hormuz by 6 April. The UAE is reportedly preparing to help the US open the strait by force and is lobbying for a UN Security Council resolution to authorise such action.
UK Response and International Diplomacy
The UK has deployed defensive military assets to the region but has not participated in offensive strikes. Prime Minister Starmer has stated that the conflict is "not our war" and that the UK will not be drawn into offensive operations. The UK is hosting a summit of 35 nations to push for maritime security across the Gulf and restore freedom of navigation.
The UK, France, and Germany have condemned Iranian counter-strikes and called for a return to diplomacy. China has stepped into a diplomatic role, attempting to act as a peacemaker — a notable shift from its previously muted official response. A Reuters/Ipsos poll found that two-thirds of Americans believe the US should quickly end its involvement in the conflict.
Global Economic Impact
The economic consequences of the conflict are being felt worldwide. Oil prices have soared, with UK diesel prices up 29% and petrol up 16% since late February. The Bank of England has warned that the UK economic outlook has "deteriorated" and that 1.3 million more UK households face increased mortgage costs. Australian Prime Minister Anthony Albanese has warned in a rare television address that the "months ahead may not be easy" due to the global effects of the conflict.
What's Next
The coming days are critical, with Trump's 6 April deadline for Iran to reopen the Strait of Hormuz approaching. Diplomatic efforts are intensifying, but with Iran's new Supreme Leader reaffirming the country's commitment to the conflict, a swift resolution appears unlikely. The global economic impact will continue to mount with every day the strait remains closed.
