US and Iran Trade Strikes as Oil Surges Above $95

The United States and Iran are engaged in a deepening military conflict centered on control of the Strait of Hormuz. Following the collapse of a June ceasefire, which President Donald Trump declared over on July 8, U.S. forces conducted 11 consecutive nights of airstrikes targeting Iranian maritime assets, drone storage, and military operations centers. These actions were partly in retaliation for Iranian attacks on U.S. personnel in Jordan and Iraq, which resulted in the deaths of 18 service members. Iran responded by striking regional military assets in the Gulf and launching missiles at Aqaba, Jordan.

The hostilities have severely disrupted global energy markets, pushing Brent crude prices to a six-week high above $95 per barrel. Shipping in the Strait of Hormuz has largely stalled due to mutual blockades and attacks on vessels, while Iran-aligned Houthi rebels in Yemen have threatened a maritime blockade of Saudi Arabian ports via the Bab el-Mandeb strait. These disruptions have caused fuel prices to spike globally, affecting consumers in Virginia, Nigeria, and India.

Diplomatically, the situation remains deadlocked. While Secretary of State Marco Rubio stated Washington remains open to negotiations, he claimed Tehran is not serious about talks. President Donald Trump has rejected diplomatic meetings and threatened to destroy Iranian bridges or power plants in response to further shipping attacks. Iran has characterized its defense doctrine as an eye for an eye. The resulting economic instability has reignited global inflation fears, leading investors to anticipate potential interest rate hikes by the Federal Reserve.