The United States launched a new wave of strikes against Iranian targets, including military command centers, missile and drone facilities, and coastal defense sites, in response to Iran's attempted missile attacks on a US base in Jordan. The US Central Command (CENTCOM) described these strikes, which lasted two hours from 8 p.m. ET to 10 p.m. ET, as a "powerful response" to the prior day's assault. President Donald Trump had vowed to retaliate fiercely after American forces intercepted Iranian ballistic missiles aimed at US troops in the Middle East. Saudi Arabia also joined the US in striking militant bases in Iraq, while Israel accused Iran-backed Hezbollah of a truce violation.
The renewed hostilities immediately impacted global markets, with Brent crude, the international standard, jumping 7.3% to $88.093 a barrel. U.S. West Texas Intermediate (WTI) crude also rose 6.5% to $87.82. US stocks ended sharply lower due to the oil price surge, and the yield on 30-year US Treasury bonds reached its highest level since 2007. The rally in oil prices was further supported by reports that OPEC+ is considering a three-month pause in planned production increases and a larger-than-expected draw of 7.2 million barrels in commercial US crude inventories.
Iran's attacks and US retaliation come after an interim agreement between the US and Iran collapsed due to renewed fighting in the Strait of Hormuz. Iran has effectively closed this crucial waterway for global energy supplies and announced plans to collect fees for passage, a move Washington opposes. The Revolutionary Guards claimed full control of the strait after attacking and stopping three tankers. The US also announced new sanctions targeting entities linked to Iran's Guards for extorting ships transiting the strait.
The conflict has also seen drone strikes ignite fires on two natural gas vessels at the Egyptian port of Damietta, including a US-owned floating storage facility and a Greek-owned tanker. It remains unclear who was responsible for these attacks, and no injuries were reported. This escalation has heightened concerns about the depletion of US stockpiles of sophisticated munitions like Patriot and THAAD interceptors, potentially increasing risks for American troops and allies if the hostilities continue. The conflict, now five months old, is unpopular in the US and is occurring just months before critical midterm elections.
