YM HORIZON

A U.S. submarine sank an Iranian warship off the southern coast of Sri Lanka, killing dozens of sailors and dramatically widening Washington's pursuit of the Iranian navy.Sri Lanka's deputy foreign minister identified the warship as the frigate IRIS Dena, and said it was heading back to Iran from an eastern Indian port.The attack happened hundreds of miles across the Indian Ocean from the Gulf, where U.S. and Israeli forces are striking Iran and Tehran is retaliating with missile and drone attacks."An American submarine sank an Iranian warship that thought it was safe in international waters," U.S. Defense Secretary Pete Hegseth said at the Pentagon. "Instead, it was sunk by a torpedo.

Global oil and gas prices jumped on Tuesday as the U.S.-Israeli war on Iran halted energy exports from the Middle East, with Tehran attacking ships and energy facilities, closing navigation in the Gulf and forcing production stoppages from Qatar to Iraq.The benchmark Brent crude oil contract gained nearly 8% on Tuesday to above $83 per barrel, the highest since July 2024, taking gains since Friday to more than 15%. European gas prices soared as much as 40% before paring gains, adding to a 40% surge on Monday. Sugar, fertiliser and soy prices have all risen too.

Supertanker costs in the Middle East have hit all-time highs, according to shipping data and industry sources on Tuesday, as the U.S.-Iran conflict intensifies with Tehran attacking ships passing through the Strait of Hormuz.Shipping through the Strait between Iran and Oman, which carries around one-fifth of oil consumed globally as well as large quantities of liquefied natural gas, has ground to a near halt after vessels in the area were hit as Iran retaliated against U.S. and Israeli strikes.

The U.S. and Israeli air war against Iran widened on Monday, with no end in sight as Israel attacked Lebanon in response to strikes by Hezbollah and Tehran kept up its missile and drone attacks on Gulf states that host U.S. military bases.U.S. President Donald Trump said the operation could continue for some weeks and that it was unclear who was in charge in Iran, following the targeted killing of Supreme Leader Ayatollah Ali Khamenei in the opening hours of the U.S.-Israel campaign over the weekend.

At least three tankers were damaged off the Gulf coast and one seafarer was killed as Iranian retaliation for U.S. and Israeli strikes on Iran exposed ships to collateral damage, shipping sources and officials said on Sunday.Risks to commercial shipping have surged in the past 24 hours, with more than 200 vessels including oil and liquefied gas tankers dropping anchor around the Strait of Hormuz and surrounding waters, shipping data showed on Sunday.Iran has said it has closed navigation through the critical waterway, prompting Asian governments and refiners - key buyers - to assess oil stockpiles.The U.S.