Iran war latest: US launches first strikes on Iran in a month

Oil prices surged above $90 on Monday following a series of retaliatory strikes between the United States and Iran. The benchmark Brent crude increased by 2.24% to reach $90.07 per barrel, while West Texas Intermediate climbed 1.94% to $85.02 per barrel. Senior economist Daniel Richards from Emirates NBD explained that the price rise stemmed from US airstrikes on Iranian targets near the Strait of Hormuz, aimed at mining operations.

Additional US secondary sanctions on Iran are anticipated, maintaining geopolitical risk in energy prices.

On Sunday, US forces targeted Iranian rocket launchers on Larak Island, marking the first US military action against Iran in a month. Iran's Islamic Revolutionary Guard Corps was readying to launch rockets carrying sea mines into the strait when US forces intervened. Iran retaliated by striking two US bases in Jordan, with eight missiles intercepted over the kingdom.

US President Donald Trump shared a cryptic message on social media, stating "Kharg Island being blown to smithereens," without elaborating. Kharg Island, situated off Iran's southwestern coast, accounts for approximately 90% of Iran's oil exports, with an estimated loading capacity of 7 million barrels daily and a storage capacity of 30 million barrels.

Meanwhile, US Treasury Secretary Scott Bessent informed Reuters that new secondary sanctions on Iran's trading partners would likely be imposed weekly. Bessent stated that the strategy begins with targeting banks, instructing them not to handle Iranian money or support the regime. Throughout the past six months of conflict, crude oil prices have fluctuated significantly, reaching a peak of around $126 a barrel in April before declining as diplomatic efforts reduced concerns about prolonged disruptions to global supplies.

Shipping through the Strait of Hormuz, which previously facilitated about a fifth of the world's energy exports, has diminished due to growing fears of increased hostilities.