US loosens Iran's grip on Strait of Hormuz but war is not over

In recent weeks, the United States has managed to weaken Iran's control over the Strait of Hormuz, while simultaneously disrupting Iran's oil exports, leading to a rapid decline in the country's economy. However, the war initiated by the US and Israel in February, initially planned to be a brief conflict, remains unresolved. The stalemate is proving to be a costly endeavor for both parties.

An agreement reached in June has since disintegrated, with no signs of diplomatic advancement since then. Ongoing low-level fighting continues, and there appears to be no clear exit strategy for the US. Despite the increasing economic pressure on Iran, there hasn't been any significant public unrest, and if its leaders find themselves cornered, they might choose military escalation over surrender. Meanwhile, their allies in Yemen have escalated attacks on Saudi Arabia, contributing to a rise in oil prices.

The price of a barrel of Brent crude, the global standard, has jumped above $100 this week, and diesel, widely used in transportation and agriculture, has reached a record level, potentially igniting inflation. US President Donald Trump has admitted that gas prices are expected to remain elevated.