OTTAWA – The ongoing conflict between the U.S. and Iran continues to disrupt global markets and travel, as reported by CBC News. The conflict, now in its sixth week, has raised concerns about the potential closure of the Strait of Hormuz, a critical waterway for oil and gas transportation, through which approximately a fifth of the world’s oil supply passes.

Oil Price Surge and Travel Disruptions

Oil prices have surged to $112 U.S. per barrel, a significant increase from around $70 per barrel before the conflict began. This increase is expected to lead to continued turbulence in air travel, even if the Strait of Hormuz reopens.

Trump Issues Ultimatum

U.S. President Donald Trump has threatened to escalate attacks on Iran if the Strait of Hormuz is not reopened, stating, according to the CBC News broadcast, that the U.S. could “knock them out for a loop.” He warned that a single terrorist act could close the strait. Trump also issued an ultimatum, promising to strike Iranian bridges and power plants if no deal is reached by Tuesday evening. He claimed the entire country could be taken out in one night, with the potential to cause mass destruction within four hours.

International Response and Negotiations

A spokesperson for the Iranian Revolutionary Guard dismissed Trump’s threats as “baseless” and stated they would not affect Iran’s offensive. At the United Nations, calls for de-escalation are growing, with any attack on civilian infrastructure being considered a violation of international law. Iran has presented a 10-point plan to end the war, which the U.S. has rejected, but negotiations are ongoing.

Rescue Mission and Military Strikes

The U.S. revealed details of a high-stakes rescue mission to recover two American service members after their fighter jet was shot down by Iran. One pilot was rescued quickly, while the second crew member was missing for hours, surviving in rough terrain and contacting American forces to transmit his location.

Meanwhile, Israeli jets have reportedly struck Iran’s largest petrochemical facility, part of the Pars gas field in the Persian Gulf. Israel also claims to have killed two senior intelligence officers in the Revolutionary Guards and destroyed several airports near Tehran. Iran has vowed to retaliate “more crushingly and extensively” if the U.S. targets civilian infrastructure.

Economic Impacts

Reuters reports that Iraq could restore crude oil exports to pre-war levels within a week if the Strait of Hormuz reopens. Iraqi officials have noted a significant drop in revenue due to the lack of alternative shipping routes, with oil production falling by approximately 80% last month.

Additionally, the UN official in Cuba warned of a widening humanitarian crisis due to fuel shortages, exacerbated by U.S. threats of tariffs against countries supplying oil to Cuba.