Major Middle East News! Iran Strikes F-35 Fighter Jet! British Nuclear-Powered Submarine Arrives in Arabian Sea

Iranian Military Latest Statement!

Over the weekend, new developments emerged in Iran: Iranian military sources claim that Iran’s domestically produced air defense system shot down a U.S. F-35 fighter jet. In the coming days, Iran will showcase its new capabilities to counter enemies.

Additionally, reports indicate that a Royal Navy nuclear-powered submarine has arrived in the Arabian Sea. With authorization from the UK Prime Minister, the British military will issue a firing order to the submarine.

On the evening of the 21st, the Saudi Ministry of Foreign Affairs issued a statement demanding that Iranian military officials leave Saudi Arabia within 24 hours. The statement condemned Iran’s attacks on countries in the region, stating, “We will take all necessary measures without hesitation to defend sovereignty and ensure national security.”

This week, Goldman Sachs and Citibank warned that if the Middle East conflict continues, crude oil futures prices could break the 2008 record of $147.50 per barrel within the next few weeks.

Iran: Domestic Air Defense System Shoots Down U.S. F-35 Fighter

According to Xinhua News Agency citing Iran’s Tasnim News Agency on the 21st, an American F-35 fighter jet was shot down by Iran’s domestically produced air defense system.

The report quotes Iranian military officials as saying, “The U.S. previously showcased the F-35 as a symbol of its military technology pride, but this attack on the F-35 was carried out by Iran’s air defense system.” The officials noted that the U.S. and Israel believed no air defense system could track and hit the F-35, but Iran’s domestically produced system surprised them.

The officials also said that in the coming days, Iran will demonstrate its new capabilities to oppose enemies.

On the 19th, Iran’s Islamic Revolutionary Guard Corps announced it had hit a U.S. F-35 stealth fighter, causing serious damage. CNN reported that on the 19th, a U.S. F-35 reportedly made an emergency landing after being hit by Iranian fire.

On the 21st, Iranian IRGC Navy Commander Ali Reza Tangsiri posted on social media that Iran’s navy used a large number of ballistic missiles and suicide drones to destroy facilities at the Minhad Air Force Base in the UAE and the Ali Salim Air Force Base in Kuwait, as well as hangars and fuel depots belonging to U.S.-Israeli forces. Tangsiri stated that previous attacks on Iranian islands originated from these bases.

In the early hours of the 22nd, the Central Command of Iran’s armed forces warned that, based on previous alerts, if Iran’s fuel and energy infrastructure are attacked, all energy infrastructure, IT systems, and seawater desalination facilities in the region will become targets.

Earlier, U.S. President Trump issued a threat to Iran, demanding that Iran open the Strait of Hormuz within 48 hours or face destruction of its power plants.

British Nuclear Submarine Arrives in the Arabian Sea

According to CCTV News, on the evening of the 21st, the UK military cited sources saying that a Royal Navy nuclear submarine has arrived in the Arabian Sea, capable of launching cruise missiles.

The submarine is the “Anson,” equipped with Tomahawk missiles and Fishery torpedoes, believed to be deployed in the northern deep waters of the Arabian Sea.

Military sources said that with Prime Minister’s approval, the UK will issue a firing order to the submarine.

On the 20th, the UK government issued a statement allowing the U.S. to use its military bases to weaken Iran’s missile bases and related capabilities used to attack ships in the Strait of Hormuz, but reiterated that the UK aims to avoid being drawn into a broader conflict.

On the same day, multiple U.S. officials reported that Iran launched two medium-range ballistic missiles at the U.S.-UK joint military base Diego Garcia in the Indian Ocean, with one reportedly failing in flight. The U.S. military intercepted the other missile, but it’s unclear whether the interception was successful.

Additionally, reports indicate that Iran launched two medium-range ballistic missiles toward Diego Garcia, about 4,000 km from Iran, but neither hit the base. This demonstrates Iran’s military influence extends well beyond the Middle East.

The Chagos Islands, located about 750 km northeast of Mauritius in the southwestern Indian Ocean, were ceded to British colonial authorities in 1965. The following year, the UK leased Diego Garcia, the main island, to the U.S. for an air force base. On May 22, 2025, the UK signed an agreement with Mauritius to transfer sovereignty of the Chagos Islands to Mauritius. Under the agreement, the military base on Diego Garcia will be leased to the UK and the U.S.

Trump previously claimed that the U.S. military might use the Diego Garcia airport to target Iran. However, the UK initially refused U.S. requests to use the base, citing international law. Prime Minister Rishi Sunak announced on March 1 that the UK had agreed to allow U.S. use of the base for “specific and limited” defensive purposes.

The Ripple Effect of Oil Price Surge Is Spreading

Since the outbreak of the Middle East conflict, international benchmark Brent crude and U.S. West Texas Intermediate (WTI) futures prices have surged significantly. Both are up over 40% compared to a month ago, with Brent staying above $100 per barrel and WTI fluctuating around $98.

Refined petroleum products (gasoline, diesel, jet fuel, etc.) have experienced even larger price increases, putting pressure on various markets. Diesel prices, rising faster than crude oil, have increased transportation costs for U.S. manufacturers, retailers, and agricultural exporters, costs that are ultimately passed on to consumers.

According to Bloomberg, the national average diesel price in the U.S. broke $5 per gallon in early March, the first time since 2022, with prices previously below $3.80. Bank of America analyst Lorraine Hutchinson wrote in a recent client report that rising diesel prices “will soon be reflected in” the U.S. trucking industry, squeezing profit margins for companies relying on nationwide trucking.

Analyst Ken Hoxstebn also noted that since the conflict began, transportation-related stocks have fallen an average of 12%.

Meanwhile, concerns are growing that supply shocks driving oil prices higher could last longer than initially expected. Damage to energy infrastructure and disruptions in major shipping routes have prompted several forecasts warning that if transportation remains constrained, oil prices could rise further.

Hoxsteb said, “While rising fuel costs are often viewed as temporary pass-through costs, eventually offset by higher fuel surcharges, we believe the conflict could persist long-term, raising concerns about declining demand in the near future.”

For the oil and gas industry, as well as buyers of refined products like jet fuel, gasoline, and diesel, the key questions are: How long will the conflict last? How long will it continue to disrupt global oil flows? How high will prices go?

According to energy officials and Wall Street strategists, oil prices could rise sharply further. The Wall Street Journal reports that Saudi officials now predict that if regional supply disruptions persist into late April, Brent futures could reach $180 per barrel.

On Wall Street, Citi’s Global Commodities Research head, Maximilian Layton, wrote in a recent report that, based on a scenario of 4 to 6 weeks of supply disruptions, Brent futures could reach $110–120 per barrel. He added that if the conflict continues into June, prices could hit $200, well above the previous high of about $147.

For companies relying on refined oil products, rising prices mean further increases in the costs of jet fuel, gasoline, diesel, and many other petroleum derivatives.

Edited by: Yang Yucheng

Layout by: Liu Junyu

Proofreading by: Zhao Yan