Iran and U.S. exchange strikes as tensions rise in Strait of Hormuz
Iran attacked two U.S. bases in Jordan after a U.S. strike on Larak Island, prompting both sides to warn of further retaliation and pushing oil prices higher.
Oil prices rose on Tuesday as markets reacted to renewed U.S.-Iran hostilities in the Strait of Hormuz. A tanker crossing the southern lane near Oman was hit by three unidentified projectiles, according to the UK Maritime Trade Operations agency, though no injuries were reported.
Iran said it struck two American bases in Jordan on Monday in response to a U.S. attack on Iranian rocket launchers on Larak Island, which it claimed killed three personnel and aimed to prevent Tehran from deploying sea-mine-carrying rockets in the strait.
Iranian President Masoud Pezeshkian told the Shanghai Cooperation Organisation summit that Tehran would immediately reciprocate if Washington returned to the commitments of the June interim nuclear deal, the Iranian Student News Agency reported.
U.S. President Donald Trump told Fox News that the United States would "hit them hard" and that a response to Iran's attacks was forthcoming.
Analysts said the U.S. strike on Larak Island appeared focused on specific launchers rather than broader Iranian military infrastructure, suggesting a limited objective to enforce the blockade of the strait. They noted that the Trump administration is also intensifying secondary sanctions aimed at countries and firms that purchase Iranian crude, a move Treasury Secretary Scott Bessent said is prompting Iran to respond kinetically.
The conflict, now in its seventh month, has lifted Brent crude above $90 a barrel and West Texas Intermediate by more than 2.5%, reflecting concerns over supply disruptions.