The United States has resumed military strikes on Iran, marking the third consecutive night of attacks, according to US Central Command. The strikes targeted locations in Iran, including the port city of Bandar Abbas and the islands of Kish, Qeshm, and Abu Musa. This escalation follows Iran's recent missile strikes on two UAE tankers in Omani waters, which resulted in one crew member's death.
Key Details
In a notification to Congress, President Donald Trump announced that "limited" military action has resumed. The US Central Command also stated that a naval blockade of ships transiting to and from Iranian ports will be reinstated. This blockade is set to take effect at 4 p.m. ET on Tuesday. Following the announcement, global oil prices surged by more than 9% as markets reacted to the renewed tensions in the Strait of Hormuz.
Background
Iran's oil minister, Mohsen Paknejad, asserted that the country’s oil exports would continue despite the reimposition of US sanctions. He claimed that Iran has maintained the necessary structures to counter the impact of these sanctions, which had been temporarily lifted for 60 days as part of a ceasefire agreement that ended on July 7. Iran reportedly exported approximately 50 million barrels of crude oil in June, primarily through a shadow fleet circumventing US restrictions.
Related coverage: US Strikes Iran, Trump Reinstates Blockade Amid Tensions.
Renewed military actions and the reinstatement of the naval blockade are likely to drive oil prices higher due to concerns over supply disruptions in the Strait of Hormuz, a critical shipping lane for global oil transport. Investors will watch for further military developments and their impact on regional stability and oil markets.