US and Iran Trade Strikes as Oil Tops $100

The United States and Iran escalated a six-month conflict into a direct maritime battle between September 7 and 11, 2026. The escalation began when U.S. Central Command destroyed five Iranian crude oil carriers—including the M/T Kaviz and M/T Derya—in the Gulf of Oman and near Kharg Island. The U.S. stated these strikes were retaliation for Iranian ballistic missile attempts against an American aircraft carrier and destroyer. Iran responded by launching a barrage of missiles at the Al Azraq military base in Jordan and claiming to have targeted 20 ships in the Strait of Hormuz, including U.S. naval vessels.

Simultaneously, Iran-backed Houthi militants launched drone and missile attacks on Saudi Arabian energy infrastructure, including the Jazan refinery, wounding over 70 people and forcing operational halts. In a separate incident, the Islamic Revolutionary Guard Corps (IRGC) captured a U.S. Dive-LD unmanned underwater vehicle near the Strait of Hormuz, which the Pentagon dismissed as a malfunctioning older model.

These hostilities pushed Brent crude oil prices above $100 per barrel for the first time since July, triggering record-high gasoline prices in the U.S. and fuel hikes in the Philippines and Pakistan. Global markets reacted with volatility, as investors feared a prolonged supply crunch. While President Donald Trump claimed oil prices would drop precipitously after the November midterms, U.S. officials reported that advisors have discussed the possibility of the conflict extending past January 2029.