U.S. forces struck dozens of Islamic Revolutionary Guard Corps targets across Iran in a two-hour operation, retaliating for Iranian ballistic missiles fired at American forces in the Gulf. The strikes restarted a campaign Washington had paused last weekend and sent Brent crude 7.9% higher to $90.74 a barrel.
U.S. Central Command hit dozens of Islamic Revolutionary Guard Corps targets across Iran on Wednesday stateside, in what it called a powerful response to Tuesday's attempted Iranian attacks on American forces in the Middle East. The two-hour wave restarted a campaign Washington had halted last weekend to give peace talks some space.
Centcom said the strikes hit military command centers, missile and drone facilities, coastal surveillance and defense sites, and maritime capabilities, aiming to further degrade threats from Iran and its proxies to U.S. forces, commercial shipping and neighboring Gulf states. Iran's state media reported that three people were killed in U.S. strikes on Qeshm Island.
Iran's surprise salvo broke the pattern
The operation answered multiple ballistic missiles that Iranian forces fired at American troops in the Gulf region late Tuesday, all of which were intercepted. Jordan's armed forces said its air defenses intercepted five missiles launched from Iran.
Tuesday's surprise attack broke the pattern of Iran responding to American strikes, signaling Tehran's willingness to restart hostilities, said Seth Krummrich, vice president at security firm Global Guardian and a retired U.S. Army colonel. Iran may respond more aggressively to future U.S. military action and may be moving away from diplomacy, he said.
Trump telegraphed the retaliation hours earlier, telling a Fox News reporter: "We'll be hitting them hard. They're going to get a beating."
Oil jumps as Hormuz traffic halts
His rhetoric sent Brent crude futures 7.9% higher to close at $90.74 a barrel, while U.S. West Texas Intermediate futures advanced 6.6% to settle at $84.46. Oil was slightly lower in Asian trade on Thursday.
But the resumption marks the latest turn in a conflict that has whipsawed oil markets and disrupted shipping through the Strait of Hormuz since fighting erupted in late February. Tanker traffic through the strait has effectively halted, and Iran rejected Oman's proposal to evenly divide control of shipping, demanding total oversight of inbound traffic and partial oversight over outbound lanes.
Supply risk builds before the OPEC+ meeting
Escalating tensions are dimming hopes of restarting negotiations, said Warren Patterson, head of commodities strategy at ING Bank. Targeting Saudi oil infrastructure raises the risk of prolonged supply disruptions, he said, citing reports that the kingdom's 400,000-barrel-a-day Jazan refinery had been shut following Houthi attacks over the weekend.
OPEC+ is nevertheless expected to announce a supply increase of 188,000 barrels per day for September at its Aug. 2 meeting, completing the unwinding of 1.65 million barrels a day of voluntary cuts, Patterson said. Once disruptions fade, that added supply reinforces the view of a well-supplied market through 2027.
Sources: CNBC, Investing.com
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