CITIC Construction Investment Futures: The Middle East situation faces the possibility of a new round of military escalation

Against the backdrop of the ceasefire agreement continuing in the United States, yesterday, small unmanned aerial vehicles were detected in multiple places across Iran, and air-defense “shut-down/disarm” systems were activated, raising the possibility of yet another round of military escalation in the Middle East. The passage through the Strait of Hormuz remains blocked. On Wednesday, the Islamic Revolutionary Guard Corps intercepted three ships attempting to pass through the Strait of Hormuz—or already passing through it—without permission. Keep an eye on the latest developments in the US-Iran situation. If the Strait of Hormuz remains disrupted, in late May and early June we will see global refined oil and crude oil inventories fall to below the lowest levels in nearly five years, and oil prices will face the return of a supply risk premium. (CITIC Construction Investment Futures)