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🇮🇷⚔️🛢 Iran’s Red Sea Escalation Options

Since US is bombing Iran from Saudi Arabia, a look at five escalatory options that will have economic impacts on KSA and further choke global oil & gas supplies.

Map shows three maritime chokepoints (nos. 1–3). Two down arrows (nos. 4–5) point to possible targets for Iranian missiles and/or drones.

1: Straits of Hormuz: sealed (pending liberation by USN and USMC)

2: Bab al-Mandab (“Gate of Tears”): can be sealed by Ansarullah (“Houthis”). This may lead CSG Ford and/or CSG Lincoln to fight Ansar, alleviating pressure on Iran. NB: oil carriers exiting Red Sea via Bab al-Mandab are destined for Asia and Africa (mostly allies);

3: Entry to Suez Canal: possible to target bulk carriers and freight carriers sailing toward, or passing through, the Suez Canal (1,350–1,450km depending on location of Iranian missile base). NB: oil carriers exiting Red Sea via Suez are destined for Europe (Iran’s enemies);

4: East-West Pipeline: just as UAE’s Hormuz bypass pipeline from Fujairah was hit today, E-W Pipeline can be struck. This escalation is reversible (i.e., ruptures in the pipeline can be rebuilt fairly quickly);

5: Yanbu South Terminal and North Terminal: hits on Yanbu—depending on severity—will represent a major escalation (damages will take longer to repair). Iran will only strike enemy oil & gas facilities in a “bigly” way if their own facilities are “obliterated.”

đź”— Shivan Mahendrarajah

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Duh Markets

🌆 Market News Digest
[July 3, 2026 EST]

🔥 Top Stories
• Middle East risk flares — IDF hits Hezbollah sites in south Lebanon; Houthis threaten Saudi assets; France deploys naval/mine-countermeasure assets near Hormuz.
• U.S. oil market scrutiny — DOJ/FTC say they’re monitoring crude for price-fixing/collusion as Brent settles at $72.12/bbl.
• Trump pardons saga — Trump signs pardons for six and faces fresh scrutiny after NBC reported undisclosed stock purchases before tariff pause.

â›˝ Oil & Energy
• Gulf crude exports topped 10M bpd in June but remain ~40% below pre-conflict levels; Fitch flags ongoing Iran/Mideast risk to corporates and oil forecasts.
• CMA CGM warns Hormuz transit charges would be “devastating”; Airbus says defense cooperation remains pressured.

📊 Markets & Macro
• Germany’s 2027 draft budget lifts borrowing to €203.7B and spending to €555.4B; euro equities firm with DAX +0.85%.
• ECB/BoE message: inflation still the focus, but Bailey says UK ...

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