The conflict in the Middle East has flared up once more. On April 14th 2024, Iran launched an attack on Israel as retaliation for Israel’s attack on their embassy earlier in April. The escalation intensified geopolitical tensions in the region following the Red Sea crisis caused by Houthi rebels earlier this year. The escalating tensions pose a significant risk of further disrupting trade and logistics activities in the region and beyond, especially considering that 80% of global trade is conducted via sea transportation. Iran is also located strategically on the northern shore of the Persian Gulf, where a significant part of the global crude oil reserves are located. The intensification of the conflict could have an influence on the global oil production in the region, which could then impact oil prices. In this IFG Progress Digest, we will try to analyze the potential impact of the escalation on the oil price and the subsequent impacts on container freight rates and inflation, both globally and domestically.