- The U.S. and Iran exchanged attacks on Sunday, marking the first publicly acknowledged U.S. strike on Iranian positions in a month.
- Oil prices rose 3% on the day, with Brent crude trading between $90.5 and $91.3 per barrel, exacerbating costs for gasoline and shipped goods.
- Treasury Secretary Scott Bessent expects oil prices to correct soon, despite new sanctions on Iran and renewed hostilities impacting the Strait of Hormuz.
The United States struck two rocket launchers on Iran’s Larak Island on Sunday, marking the first publicly acknowledged U.S. attack on Iranian positions in a month, as confirmed by U.S. Central Command to MS NOW. Iran retaliated by attacking U.S. bases in Jordan, according to state media reports, escalating a conflict that continues to roil global commodity markets.
Consequently, Brent crude oil prices surged 3% on the day to trade between $90.5 and $91.3 per barrel, reflecting the ongoing disruption to traffic in the Strait of Hormuz. The waterway, which handles roughly 20% of the world’s oil shipments, has seen curtailed traffic due to the war, pushing costs higher for gasoline and shipped goods. On Monday, the United Arab Emirates also reported intercepting an Iranian drone over its waters, further highlighting regional instability.
Meanwhile, Wall Street reacted negatively, with the S&P 500 falling 0.5%, the Dow Jones Industrial Average dropping 333 points, or 0.6%, and the Nasdaq declining 0.4%. In an interview with CNBC, U.S. Treasury Secretary Scott Bessent advised that oil prices will fall back down soon, stating, “I don’t understand why they are climbing back up.” Bessent expects oil prices to correct, even after outlining plans for more sanctions to punish Iran last week, which were followed by a resumption of attacks between the two nations.
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