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Single incident involving ship in Strait of Hormuz could impact global economy — expert

The Strait of Hormuz acts as a kind of amplifier of global expectations in the energy and shipping industries, Nong Hong, Executive Director at the Washington-based Institute for China-America Studies, said

SHANGHAI, February 5. /TASS/. A single disruption to shipping in the Strait of Hormuz off the coast of Iran would lead to significant changes in international logistics and energy markets, Nong Hong, Executive Director at the Washington-based Institute for China-America Studies, said while commenting on tensions between the United States and the Islamic Republic.

"A single interception, escort, or attack on a vessel, even without significant losses, would be enough to trigger a revaluation of risk-reward dynamics, which could then spill over into the broader economy through oil prices, insurance rates, and uncertainty linked to rerouting and shipping schedules," Guancha quoted her as saying.

The Strait of Hormuz acts as a kind of amplifier of global expectations in the energy and shipping industries, she said, adding that maritime interception and escort operations are characterized by close contact, rapid pace, and a lack of information transparency. "In the event of a collision, warning shot, or accidental damage, not only does the risk of a military clash increase, it would also deal a blow to expectations regarding oil prices and shipping," the expert said.

On February 3, US Central Command (CENTCOM) spokesman Capt. Tim Hawkins said that a US F-35C fighter jet had shot down an Iranian drone after it approached USS Abraham Lincoln in the Arabian Sea. According to a source of the Tasnim news agency, Iranian authorities are currently unable to determine the reasons for the loss of contact with the UAV, and they are being investigated. However, the source noted that the Shahed-129 drone was conducting reconnaissance and photography in open waters as part of its normal and legitimate mission.

On January 26, US President Donald Trump announced that a massive armada was heading toward Iran. He expressed hope that Tehran would return to the negotiating table and reach a fair and equitable deal that would entail a complete abolition of nuclear weapons. On February 2, the American leader warned that rejecting the deal would have serious consequences for the Islamic Republic.