US-Iran Escalation and Shipping Risk: The U.S. expanded strikes on Iranian infrastructure, hitting bridges and collapsing a tower at Shahid Kalantari Port in Chabahar, while Iran retaliated by targeting a power and desalination plant in Kuwait—raising fresh fears for Gulf energy and water supplies as Hormuz disruption continues. Oil Price Pressure: Brent pushed higher on renewed hostilities, with analysts pointing to tighter expectations if the Strait stays disrupted longer; meanwhile, U.S. pump prices are starting to climb again as crude holds around the $80s. Iraq’s Route Diversification Push: Iraq signed deals with U.S. firms to develop alternative shipping routes away from the Strait of Hormuz, and Iraq and Syria agreed to rehabilitate the Kirkuk-Baniyas pipeline, aiming to cut reliance on Hormuz. Iraq-US Investment Drive: Prime Minister Ali al-Zaidi unveiled an “open-door” approach for U.S. investors, pitching long-term partnerships across energy and industry. Renewables in the Mix: A U.S.-Iraq solar project is moving forward with feasibility work underway, as Baghdad seeks to diversify power and reduce dependence on Iranian gas imports. Regional Security Spillover: Iran-linked attacks and counterattacks also drew attention to Gulf ports and logistics hubs that could face retaliation. Energy Markets Watch: Baker Hughes said U.S. rig counts hit the highest since April 2025, while a planned Canadian refinery maintenance could tighten northeastern U.S. fuel supply.