Breaking! A container ship attacked! Israel: Destroyed Iran's "key assets"!

Middle East remains a hotbed of conflict!

According to the latest reports, on March 11 local time, the Israel Defense Forces announced that they had detected three missile launches from Iran within the past four hours. The day before, the IDF claimed to have destroyed key assets of Iran’s domestic security forces.

Additionally, Xinhua News Agency reported that the UK Maritime Trade Operations (UKMTO) said on the 11th that a container ship was attacked and damaged near the UAE.

The United Nations Conference on Trade and Development (UNCTAD) released a report on the 10th stating that the transportation through the Strait of Hormuz has been disrupted, impacting global supply chains.

The U.S. Department of Labor will release February’s CPI data on Wednesday, with market expectations that the figure may rise. As the Iran conflict continues to push up oil prices, inflation expectations for March are also expected to increase further.

Container Ship Attacked

According to Xinhua News Agency, the UK Maritime Trade Operations (UKMTO) said on the 11th that a container ship reported being attacked and damaged in waters near the UAE, with all crew members safe.

The UKMTO issued a statement saying the ship was reportedly attacked by an unidentified projectile approximately 25 nautical miles (about 46 km) northwest of Ras Al Hamra, UAE. The extent of the damage is unclear, and an investigation is ongoing.

UNCTAD’s report on the 10th states that the Strait of Hormuz is a critical global energy transit route, carrying about a quarter of the world’s seaborne oil trade, as well as large volumes of liquefied natural gas and fertilizers. Disruptions in shipping through the strait have driven up energy and fertilizer prices, including shipping costs such as freight, fuel, and insurance, leading to increased supply chain costs. These factors may push up food prices and affect daily life in some countries and regions, especially impacting the most vulnerable economies.

The report emphasizes that developing economies face particular risks, with some heavily burdened by debt and limited fiscal space to absorb new price shocks. The escalation of Middle East tensions will have a global economic impact depending on the duration and scale of the disruption in Hormuz Strait shipping. Continuous monitoring of the situation is necessary, especially regarding its impact on fragile economies.

Furthermore, AFP cited data from market services firm Kpler on the 10th, noting that about 33% of global fertilizer shipments pass through the Strait of Hormuz, and current shipping risks in this vital route have surged.

Israel: Iran Fires 3 Missiles in 4 Hours

According to Xinhua News Agency, at around 4:30 a.m. local time (10:30 p.m. Beijing time) on the 11th, the Israel Defense Forces issued a statement saying they detected a new round of missile launches from Iran, with their air defense systems intercepting the projectiles. The IDF reported that Iran had launched three missiles toward Israel within the past four hours.

The day before, the IDF announced that they had destroyed most of the key assets of Iran’s domestic security forces and mobilized militia groups in Iran’s Ilam Province. The statement said the headquarters of Iran’s domestic security forces, intelligence agencies, and several militia bases in Ilam had been destroyed.

Multiple U.S. media outlets reported on the 10th that a U.S. diplomatic support center near Baghdad Airport was attacked by drones. The extent of damage and casualties is not yet clear.

Six drones targeted the facility, which provides logistical support to U.S. diplomats; one drone hit the facility, while the other five were shot down.

According to CCTV News, on the 11th, the Australian Embassy in Israel issued a notice stating, “Due to increased security concerns, the embassy is closed. Do not visit the embassy or surrounding areas.” The notice added that Australian officials remain in Israel and will continue to provide consular services.

Since February 28, the U.S. and Israel have launched large-scale airstrikes against Iran, prompting Iran to retaliate against Israeli and U.S. military bases across the Gulf region.

Iran Situation May Drive U.S. Inflation Higher

On Wednesday, the U.S. Department of Labor will release February’s inflation data, with expectations that the figure may rise. As the Iran conflict continues to push up oil prices, inflation in March is also expected to increase further.

Reuters noted that the anticipated rise in February’s CPI reflects the ongoing but gradual effects of the Trump administration’s comprehensive tariff policies. These tariffs were originally implemented under a law applicable during national emergencies but were later overturned by the U.S. Supreme Court.

Wells Fargo senior economist Sarah House said, “February’s CPI may indicate that the U.S. has once again stalled in reducing inflation, despite the Middle East conflict only starting at the end of February. Last month, oil and gasoline prices rose due to expectations of conflict escalation.”

A Reuters survey of economists predicts that February’s CPI could increase by 0.3% month-over-month, higher than January’s 0.2%. The forecast range is between a 0.1% and 0.3% increase. Over the 12 months ending in February, CPI is expected to rise by 2.4%, unchanged from January, reflecting the fading effect of last year’s high base. The Fed uses the Personal Consumption Expenditures (PCE) Price Index to measure its 2% inflation target.

Economists estimate that gasoline prices in February may have risen about 0.8%, after declining for two consecutive months. According to AAA, since the U.S.-Israel conflict with Iran began in late February, gasoline prices have increased over 18%, reaching $3.54 per gallon. Oil prices briefly surged above $100 per barrel but retreated on Tuesday after Trump suggested the war might end soon.

“Just a 15% recent increase in oil prices could, depending on how the conflict develops, raise overall inflation by 0.15 to 0.30 percentage points,” said Andy Schneider, senior U.S. economist at BNP Paribas Securities. Food prices may see moderate increases, but Schneider added, “Persistent oil shocks will push up fertilizer and transportation costs, potentially leading to higher food inflation later this year.”

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