Markets reacted swiftly Monday after word spread that U.S. forces had carried out strikes against Iranian military assets. Brent crude jumped back above the $90 mark per barrel, while its American counterpart also posted sharp gains, as traders absorbed the news of the first confirmed American action against Iran in more than a month.
By 2202 GMT, Brent futures had climbed $2.22, a jump of 2.52%, landing at $90.32 a barrel. U.S. West Texas Intermediate wasn’t far behind, rising $2.01, or 2.41%, to reach $85.41 a barrel, according to Reuters.
What Triggered the Strike
The attack targeted two Iranian launchers on Larak Island, situated in the Strait of Hormuz. A U.S. official explained that the strike was carried out specifically to stop Iran from deploying sea mines in the strategic waterway, per Axios.
This marks a notable shift after weeks of relative calm. Trump had halted a two week long U.S. military campaign in the region back in late July, meaning Sunday’s strike represents the first time American forces have engaged Iran directly since that pause began.
Iran’s Response
Iran didn’t let the strike go unanswered. A U.S. official confirmed to the publication that Iran fired ballistic missiles toward an American base located in Jordan as retaliation. The official claimed that despite several missiles being launched, none of them struck U.S. bases, and there were no reports of damage or injuries tied to the incident.
Background on the Mine Threat
This confrontation follows closely on the heels of a major operation just last week, when the U.S. military completed the job of clearing every mine from the strait’s primary shipping lane. At that time, Trump made it clear that Iran had been warned about the consequences of trying again, declaring that any vessel caught placing new mines would be destroyed immediately.
Trump reinforced that message on Truth Social, describing a “Zero Tolerance policy” toward any future mine placement in the strait.
U.S. Central Command spokesperson Capt. Tim Hawkins detailed the justification behind Sunday’s strike, explaining that American forces observed Islamic Revolutionary Guard Corps personnel preparing to launch rockets carrying sea mines into the Strait of Hormuz. He added that U.S. forces remain closely watching the situation and are ready to defend the uninterrupted flow of trade through the waterway.
The IRGC, for its part, issued its own warning in response, stating that the American strike would be met with retaliation from what it called the “sons of Iran,” promising that the aggressor would face punishment.
