5/4/26: Oil Spikes Amid Hormuz Chaos, US Bases Damaged By Iran, Spirit Airlines Goes Bankrupt

Krystal and Saagar cover fast-moving escalations in the Strait of Hormuz amid the Iran war, including competing claims of attacks on US and UAE vessels, new US rules of engagement, and Trump's plan to "guide" neutral ships through restricted waters—clarified as providing maps rather than escorts. Oil prices spiked amid the chaos, pushing US gas to $4.45 per gallon, up 30 cents in a week. They also analyze US vulnerabilities exposed by damaged bases, Gulf state divisions, and the bankruptcy of Spirit Airlines due to doubled jet fuel costs.

Hormuz Tensions Intensify

Iranian state media claimed two missiles struck a US warship near Jask Island after warnings were ignored; US CENTCOM denied it, stating no Navy ships were hit while enforcing a blockade on Iranian ports. Separately, the UAE reported one of its oil tankers, operated by ADNOC, was struck while transiting the strait. US officials confirmed changed rules of engagement, authorizing strikes on immediate threats like IRGC fast boats or missile positions crossing the strait.