Hormuz heats up again as the UAE comes under attack, oil jumps, and geopolitical risk returns to the market spotlight

📌 Tensions in the Gulf escalated after the UAE accused Iran of launching missiles and drones, with one drone causing a fire at the Fujairah oil zone. Although most missiles were intercepted or fell into the sea, the incident still adds pressure because Fujairah is a key part of the region’s energy infrastructure.
⚠️ The US also stepped up efforts to escort commercial ships through the Strait of Hormuz, while Washington said it had sunk several small Iranian boats harassing the shipping route. Iran denied some of the accusations and claimed it had targeted a US warship, but Washington rejected reports of any damage.
🛢️ The market reaction was centered on oil, as the risk of disruption in Hormuz returned while the US-Iran ceasefire remains fragile. Oil prices jumped sharply during the session, while capital flows turned more cautious toward risk assets.
🔎 Over the next 24–72 hours, the key point to watch is not only the actual damage, but whether the US and Iran continue to clash directly. If Hormuz does not fully normalize, the energy risk premium may stay elevated and trigger broader volatility across equities, FX, and crypto.
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