Trump vowed major military punishment for Iran and its Houthi allies after Yemeni fighters struck two Saudi oil tankers in the Red Sea. The attack widened the Middle East war to a second shipping chokepoint and sent oil prices surging past $100 a barrel.
U.S. President Donald Trump promised major military punishment for Iran and the Houthis after the Yemeni fighters hit two Saudi oil tankers in the Red Sea, extending the Middle East war to a second major shipping chokepoint. Fears that the disruption could block another sea route sent oil prices surging.
Oil punches above $100
Brent crude rose more than 6%, piercing $100 a barrel for the first time since May — one of the steepest rises of the war. Shipping insurance costs through the southern Red Sea doubled for some companies after the reported attacks. The number of tankers crossing the Strait of Hormuz fell to just one on Thursday, its lowest since May 7.
Strikes widen across the Gulf
The U.S. military struck Iran for a 13th consecutive night, prompting Iran to fire at neighbouring Arab states that host U.S. bases. Four people were killed and five injured in a U.S. missile attack on the Iranian city of Ahvaz, state broadcaster IRIB said. Iran also said it hit U.S. targets in Jordan and Kuwait; Jordan’s army engaged four Iranian missiles and six drones, intercepting all but one.
A threat to seize Iranian money
Trump said any damage to cargo ships would be paid for with frozen Iranian assets held by the United States, without saying how. According to Reuters, Iranian Foreign Minister Abbas Arachi warned on X: “Seizing another nation’s assets to pay for unrelated future claims is an incendiary precedent.”
High oil prices are stoking inflation globally, pressuring Trump’s Republican allies before November’s congressional elections. The Republican-led House backed legislation directing Trump to halt the military action, though the Senate blocked a separate measure hours later.
Source: Investing.com
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