US and Iran Exchange Strikes as Oil Prices Surge
President Donald Trump vowed to hit Iran hard after the two nations exchanged military strikes and projectiles targeted oil tankers in the Strait of Hormuz.
Military hostilities between the United States and Iran escalated this week following a series of kinetic strikes and maritime attacks. The conflict began Sunday when Donald Trump authorized strikes on Iranian rocket launchers on Larak Island to prevent Tehran from planting sea mines in the Strait of Hormuz. Iran retaliated by launching missiles at U.S. military bases in Jordan, though some reports indicate these were intercepted.
Maritime tensions peaked Monday when two oil supertankers, the Saudi-flagged Sidr and the Liberian-flagged Senegal Prosperity, were struck by projectiles while exiting the Strait of Hormuz near the coast of Oman. The vessels were traveling through a U.S.-established corridor designed to bypass Iranian control of the waterway. While no casualties were reported, the attacks caused commercial vessel traffic to drop significantly below pre-conflict levels.
President Trump has vowed to hit Iran hard and is considering further strikes to degrade Iranian radar and missile capabilities. Iranian President Masoud Pezeshkian stated that while Iran is not seeking war, it will not remain silent in the face of aggression, though he expressed willingness to return to a ceasefire if the U.S. fulfills commitments under a June memorandum of understanding.
The instability drove Brent crude prices above $92 per barrel and pushed U.S. Treasury yields to nearly two-decade highs. Treasury Secretary Scott Bessent has responded by implementing new sanctions against Iranian financial institutions and bond buybacks to contain yields. Bessent dismissed the long-term strategic value of the Strait of Hormuz, claiming oil pipelines will make the waterway worthless within two years.
