US-Iran military confrontation resumes, shaking global oil markets
For the first time in a month, the US and Iran exchanged military strikes, immediately affecting world oil prices and stock indices.
Military confrontation between the United States and Iran has flared up again after a month-long pause. On Sunday evening, US forces carried out a preemptive missile strike on Larak Island in the Strait of Hormuz, where two Iranian missile launchers were located. The US president also claimed that Kharg Island, home to Iran's main oil terminals, had been destroyed, though no evidence of that strike has been provided.
In an interview with FOX NEWS, President Donald Trump reiterated his belief that Iran faces imminent total defeat, claiming Iran's navy, air force, leadership and air defenses had all been wiped out.
Iran responded overnight by striking targets at two US military bases in the region. Iran's Foreign Ministry stated that its armed forces had struck US bases in Jordan in response to aggression and in defense of its right to self-defense. A separate Iranian drone attack on a military base in the United Arab Emirates was also reported.
A new incident also occurred in the Strait of Hormuz, which the US had recently declared fully cleared of mines and safe for shipping. Iran's navy reported that a supertanker attempting to pass through the strait's southern section struck two naval mines and came to a complete stop. Iran's Revolutionary Guard Corps warned shipping companies that vessels violating the strait's safety rules would meet the same fate. The ownership of the damaged tanker remains unknown.
The fresh escalation in the Persian Gulf immediately affected global oil markets and stock indices. Oliver Roth, head of a division at financial group ODDO, said markets were closely watching the situation, since even a limited missile exchange could quickly escalate into something far larger, and noted that oil prices had risen noticeably in response. The latest developments undermine hopes for a swift resumption of shipping through the Strait of Hormuz.
Meanwhile, Iranian President Masoud Pezeshkian arrived in Bishkek, the capital of Kyrgyzstan, on August 31 to attend the Shanghai Cooperation Organisation summit; Iran joined the organization three years ago.
