As the US and Israel’s war on Iran enters its third week, the economic fallout is growing with little sign of easing as Tehran’s new supreme leader vows to keep the Strait of Hormuz closed.
Casualties are rising, with six US servicemen killed the day before when a refueling plane crashed in western Iraq. More than 2,000 people have been killed in Iran and Lebanon since the war began, and dozens more across the region.
Oil prices continued to rise on Friday due to unrest over the Strait of Hormuz, a major artery of energy trade. Meanwhile, Iranian sources told CNN that Iran is considering conditions for allowing oil tankers to pass through the heavily fortified strait, including potentially requiring all trade to be conducted in Chinese yuan.
Here’s what you need to know on day 14.
What are the main headings?
Crashed plane: A U.S. Air Force refueling plane crashed in western Iraq on Thursday, killing all six on board, the U.S. military said. The incident was not caused by “hostile or friendly fire” and involved a second U.S. tanker, the military added. Air Force officials later told CNN that the plane was not equipped with an ejection system or parachute to evacuate the crew mid-air.
FUEL CRISIS: U.S. gas prices rose another 3 cents per gallon, bringing the average price to $3.63 per gallon, a 22-month high, according to the latest statistics from AAA. The Strait of Hormuz is one of the world’s most important shipping lanes, and its virtual closure as a result of the war caused a global fuel crisis.
Weakening Iran: U.S. Secretary of Defense Pete Hegseth said joint U.S.-Israeli attacks have significantly reduced Iran’s military capabilities, with Iran’s missile volume “down by 90%” and its drone volume “down by 95%.”
New Israeli attacks: Israel continued its attacks on Iran through Friday night, saying reported targets include Iranian security checkpoints in Tehran, government buildings and military weapons storage areas. Iranian state media said a woman was killed in an explosion early Friday in central Tehran near a large al-Quds Day rally in support of Palestinians.
President Trump’s declaration: US President Donald Trump has suggested that the oil tanker’s crew “should show courage by passing through the Strait of Hormuz.” At least 16 oil tankers, cargo ships and other ships have been attacked in and around the Strait of Hormuz, Arabian Gulf and Gulf of Oman since the war began two weeks ago, according to the British Maritime Authority. On Friday night, President Trump told reporters he believed the U.S. Navy would escort the tanker through the Strait “very soon.” He also said the US had threatened to bomb “all military targets” on Iran’s Kharg Island and attack the island’s oil infrastructure if Iran continued to block ships from passing through the strait.
Marines to the Middle East: Three officials familiar with the plan told CNN that the Pentagon is sending a Marine Expeditionary Unit (MEU) to the Middle East. The role and exact destination of the MEU is not yet clear, but it has been used in the past for evacuations, amphibious missions, and special operations.
Supreme Leader’s Message: A statement read on Iranian state television on Thursday was described as Mojtaba Khamenei’s first message as Iran’s new supreme leader. Hegseth later said the written statement was evidence that the leaders were “desperate,” “scared,” and “wounded.”
US and Israeli flags burned during Al-Quds Day rally in Iran
Attack on Israel: New missiles were fired into Israel early Friday morning, wounding two people and damaging buildings in northern Israel. Earlier, Iran fired missiles at Israel and Hezbollah announced it had launched a simultaneous attack from southern Lebanon, Iranian state media said.
Targeting Beirut: Israel has also expanded its operations targeting Hezbollah in Lebanon, including the capital Beirut. One expert said the mass evacuation order in Lebanon could push the number of displaced people to more than 1 million within days.
Rising casualties: Civilian casualties continue to rise, with an Israeli airstrike on a Lebanese university killing two academics on Thursday, killing two foreigners in Oman on Friday, and wounding three Red Crescent aid workers in Iran.
Iran considers oil options: A senior Iranian official told CNN that the country is considering allowing a limited number of oil tankers to pass through the Strait of Hormuz, provided the oil cargo is traded in Chinese yuan. Sources earlier told CNN that U.S. defense officials had significantly underestimated Iran’s willingness to restrict traffic through the strait.
New Bounty for Khamenei: The State Department has announced a $10 million reward for information on key figures in the Iranian government, including newly appointed Supreme Leader Mojtaba Khamenei. In a notice posted on social media, the agency added that tipsters may be “eligible for transfer” along with prize money if they have information about the named person.
Senate Hearings: Leading U.S. Senate committee chairs will soon hold their first hearings on the war, with testimony from senior Pentagon officials, CNN reported. So far, the Republican-led Congress has not held public oversight hearings on the dispute, but has held several secret meetings for lawmakers.
Is the end in sight? President Trump said Friday that he will know the war with Iran is over when it is felt “in the bones.” Since the campaign began, President Trump has given various hints about how long the conflict will last.
