The U.S. and Iran exchanged strikes for the first time in a month, with American forces hitting Iranian rocket launchers on Larak Island and Iran's Revolutionary Guards retaliating against two U.S. bases in Jordan. Brent crude jumped above $90 a barrel as President Trump threatened Iran's Kharg Island oil export hub.
US strikes Larak Island, Iran hits back in Jordan
American forces struck two Iranian rocket launchers on Larak Island on Sunday, the first publicly acknowledged U.S. strike on Iranian positions since late July. U.S. Central Command said the Islamic Revolutionary Guard Corps had been observed preparing to launch rockets carrying sea mines into the Strait of Hormuz.
According to CNBC: "Earlier today U.S. forces struck two Iranian launchers on Larak Island." Iran's Revolutionary Guards responded on Monday by launching an attack on two U.S. bases in Jordan. InvestingLive reported the missiles targeted the King Hussein and Al Azraq bases. A U.S. source said most were intercepted with no significant impact. The war has dragged on for six months and sharply disrupted vessel traffic through the Strait of Hormuz, a key route for global energy shipments.
Brent crosses $90 after a month of calm
Brent crude futures rose nearly 3% to $90.40 a barrel on Monday morning, while West Texas Intermediate climbed to $85.51. CNBC separately reported Brent's November contract trading 2.7% higher at $90.48, with WTI's October contract up 2.7% at $85.62.
The rise comes after prices fell 7% last week following talks between Iran and Oman on reopening the contested waterway. That fighting offset hopes for a supply increase after Venezuela said the U.S. would help develop 17 oil fields holding 65 billion barrels of proved reserves.
Trump threatens Iran's main oil hub
President Trump extended his military threats against Iran to Kharg Island, Tehran's primary oil export hub, as hostilities escalated. Last week, CENTCOM had completed clearing sea mines from the strait's international shipping routes and said it remains prepared to protect the free flow of commerce through the waterway.
Even so, InvestingLive noted there is no appetite for further military operations, as the U.S. instead pursues economic pressure to force Iran into a deal. That stance should limit the downside in oil prices, though the price action might remain mostly rangebound as diplomatic attempts continue to trigger selloffs. InvestingLive added that the geopolitical risk premium increased a bit and lifted oil prices, but said the flare-up looks like the kind of skirmish markets might quickly forget.
Sources: CNBC, MarketWatch, InvestingLive
Trading involves risk.
Risk Disclaimer
