Ceasefire Stands as Gulf Tensions Surge and Oil Markets React

US officials reiterate that the ceasefire with Iran remains in place even as tensions in the Strait of Hormuz flare, with Iran’s IRGC warning ships to use a specific transit corridor and US forces guiding vessels as a defensive, temporary measure. Across the region, exchanges of fire and threats persist, including UAE missile and drone attacks, signaling a fragile pause in hostilities. The situation is fueling volatility in energy markets, with oil demand falling at a record pace outside the Covid era and U.S. gasoline prices around $4.48 per gallon as prices stay elevated.