“Reports that the US brought down an Iranian drone in the Strait of Hormuz will escalate tensions even further. Iranian officials have thus far taken care not to react to the incident in a way that provoke further conflict; officials’ immediate response was to deny that any Iranian aircraft had been lost. Nonetheless, Iran has made it clear in recent weeks that it rejects any Western presence in the Strait of Hormuz–officials warned the UK to withdraw its ships from the region earlier this month, saying that it could ensure regional security alone. The latest skirmish with the US is likely to put Iran even more on guard.
We still do not expect either party to willingly enter into open conflict; Iran is ill equipped to wage an expensive conflict, and doing so would probably alienate its remaining allies in Europe. The US government will not want to start a deeply unpopular foreign conflict just as the campaign season ramps up for 2020. However, the risk of a policy miscalculation remains high in this heated environment, meaning that more skirmishes are likely in the coming weeks.”
UK’s June budget deficit hits four-year high in blow to next PM – business live – The Guardian