Senior Iranian Official: Unclear whether there was damage to US ship – Reuters

A senior Iranian official told Reuters that Iran fired a warning shot against a US warship to prevent its entry into the Strait of Hormuz, adding that it was unclear whether there was any damage.

Meanwhile, citing an unnamed source, Iran's Tasnim News agency reported that Tehran is ready for any possible scenario and that they will not let the US to bully Iran. The outlet reiterated that Iran will not allow US forces to pass through the Strait of Hormuz.

Market reaction

The US Dollar (USD) stays resilient against its rivals in the second half of the day on Monday. At the time of press, the USD Index was up 0.2% on the day at 98.40.

May 4, 2026

GBP/USD drifts below 1.3550 as rising US-Iran tensions sour sentiment

The Pound (GBP) reverses initial gains against the US Dollar (USD) on Monday and extends its correction from Friday’s highs above 1.3650, to session lows below 1.3550.

Brent: Higher prices needed as Hormuz stays shut – OCBC

OCBC strategists Sim Moh Siong and Christopher Wong highlight that Brent briefly topped USD126 as the Strait of Hormuz closure and inventory drawdowns tightened supply, but optimism on a US–Iran deal has recently weighed on prices.