US Campaign “Ahead of Plan” But Hormuz Shutdown Sends Markets Into Panic

U.S. forces, under the command of Admiral Brad Cooper at United States Central Command, are conducting continuous strikes across Iranian territory.

U.S. forces, under the command of Admiral Brad Cooper at United States Central Command, are conducting continuous strikes across Iranian territory. Cooper described the campaign as “24/7 strikes from seabed to space and cyberspace,” with roughly 50,000 troops, 200 aircraft and two carrier groups engaged.

The escalation follows the killing of Iran’s Supreme Leader Ali Khamenei in the opening phase of the conflict. Tehran has vowed retaliation and announced it will appoint a successor, signalling that the regime intends to maintain continuity despite the unprecedented leadership blow.

Meanwhile, Israel has launched fresh waves of attacks targeting missile launchers, air defence systems and command centres in Tehran. Israeli Defence Minister Israel Katz declared that Iran’s leadership itself is now a legitimate target.

Inside Israel, air raid sirens have sounded repeatedly as Iranian missiles were intercepted mid-air, underscoring that Tehran retains retaliatory capabilities.

Markets Spiral as Energy Artery Closes

The conflict’s most immediate global impact has been economic. Iran’s reported closure of the Strait of Hormuz a corridor through which roughly a fifth of the world’s oil exports transit triggered a sharp spike in crude prices.

Tehran claims to have struck multiple tankers that ignored warnings not to pass through the Strait. Production stoppages have followed in energy-dependent Gulf states including Qatar and Iraq, intensifying supply fears.

Asian markets tumbled, with Seoul recording a historic crash. Investors fled to traditional safe havens: gold surged and the U.S. dollar strengthened. Airlines and tourism operators faced more than 20,000 flight cancellations as airspace closures disrupted international travel.

President Donald Trump said the U.S. Navy could begin escorting tankers if necessary, but analysts remain sceptical whether that would stabilise energy flows or simply widen the theatre of risk.

Western Allies Divided

European governments have adopted a cautious stance. French President Emmanuel Macron announced the deployment of an aircraft carrier to secure Mediterranean maritime routes, yet criticised the U.S. and Israeli strikes as being conducted outside international law.

In Washington, Trump faces mounting domestic scrutiny. Members of Congress from both parties question whether the president can sustain an open-ended campaign without legislative approval. The administration has acknowledged U.S. casualties, with the Pentagon confirming the first American troop deaths.

Politically, rising fuel prices pose risks for Trump’s Republican Party ahead of midterm elections, as economic strain tends to erode electoral confidence.

Civilian Toll Mounts

Iran reports 787 deaths so far, including 165 schoolgirls killed on the first day of bombardment when a school was struck. Tehran has labelled the campaign an unprovoked attack, framing its retaliation as defensive rather than expansionist.

The scale of civilian casualties complicates Western narratives of precision strikes and risks shifting global public opinion against the campaign.

Analysis

Militarily, Washington may indeed be “ahead of the game plan.” Strategically, however, the picture is far more uncertain. Eliminating key infrastructure and leadership figures can degrade capacity, but it does not automatically deliver political outcomes particularly in a state with entrenched security institutions like Iran’s Revolutionary Guards.

The closure of the Strait of Hormuz illustrates how asymmetric leverage can outweigh battlefield metrics. Iran may not match U.S. airpower, but it can disrupt global energy arteries turning regional war into a global economic crisis.

This conflict is evolving into a test of endurance rather than speed. If energy prices remain elevated and civilian casualties mount, political pressure on Western governments could intensify faster than military gains accumulate. In modern warfare, economic resilience and narrative control often prove as decisive as battlefield dominance and on those fronts, the outcome remains far from settled.

With information from Reuters.

Sana Khan
Sana Khan
Sana Khan is the News Editor at Modern Diplomacy. She is a political analyst and researcher focusing on global security, foreign policy, and power politics, driven by a passion for evidence-based analysis. Her work explores how strategic and technological shifts shape the international order.