Iran Ended The Pause In Fighting With The U.S. With New Strikes. Oil Jumped As a Result
Oil is jumping on Wednesday after Iran resumed attacks against the U.S. after a brief lull in fighting.
Brent crude, the international benchmark, climbed almost 6% and stood just below $87 per barrel at 8:21 a.m. ET, while West Texas Intermediate, the U.S. benchmark, climbed 6.61% and clocked in at $84.50 at the same time.
Iran launched the attack against a U.S. base in Jordan on Tuesday. The U.S. Central Command said in a statement that the “Islamic Revolutionary Guard Corps forces launched multiple ballistic missiles from Iran in an attempted surprise attack on U.S. forces based in the Middle East.”
It went on to claim that “all Iranian missiles were successfully intercepted. U.S. forces remain vigilant and at a high state of readiness.”
The U.S. later said it fired on Iran-backed militias in Iraq along with Saudi Arabia in retaliation for strikes against Riyadh over the past days. Groups said at least 20 fighters have been killed.
President Donald Trump addressed Tehran’s attacks against its bases in an interview with Fox News on Wednesday, saying Washington will strike the country hard.
The development follows a report claiming that Iranian officials are comfortable with the current state of the war and believe they have leverage over Trump.
The New York Times detailed that Tehran will seek Washington’s recognition of its control over the Strait of Hormuz, something the country has been unwilling to do so far.
The outlet did note that the scenario is not without challenges for Tehran, as the country’s economy is set to continue deteriorating as a result of the U.S.’s blockade of its ports and a years-long malaise.
Tehran continues taking steps towards solidifying its control over the waterway in the meantime. Iranian Foreign Minister Abbas Araghchi held talks with Omani and Saudi counterparts about the future of navigation through the strait.
Another report detailed that Senior Trump administration officials believe the United States’ economic pressure campaign against Iran may ultimately inflict greater damage than weeks of military strikes.
According to an Axios report, U.S. officials argue that mounting financial pressure is pushing Iran into one of its most severe economic crises in years, creating shortages, straining government finances and weakening the country’s ability to fund its military and regional allies.
