US resumes Iran strikes, driving Brent crude above $90
The United States has resumed military strikes against Iran, abruptly ending a brief diplomatic pause and sending oil prices surging to levels that threaten to revive inflationary pressures across Europe.
U.S. forces launched fresh strikes against Iran at 8 p.m. Wednesday stateside, ending a weekend ceasefire intended to give peace negotiations room to breathe. The bombardment came in direct retaliation for Iranian missile attacks on American positions in the Gulf region the previous day.
The Islamic Revolutionary Guard Corps fired multiple ballistic missiles at U.S. bases, though all incoming projectiles were intercepted. Jordan's military confirmed its air defenses specifically shot down five of the Iranian missiles launched during the Tuesday barrage.
The immediate fallout from this escalation landed squarely on global energy markets, sending prices sharply higher. Brent crude futures, the primary European benchmark, soared 7.9% on Wednesday to close at $90.74 a barrel. U.S. West Texas Intermediate futures climbed 6.6% to settle at $84.46. Oil was trading slightly lower in early Asia trade on Thursday, but the baseline remains elevated.
For European economies, this rapid price jump near $91 a barrel introduces fresh inflationary risks. European industries and consumers are highly sensitive to Brent crude fluctuations, and sustained higher energy costs threaten to complicate the continent's broader economic stability. The price spike effectively erased the financial buffer provided by the brief weekend halt in hostilities.
Beyond immediate pricing, the physical movement of global trade remains under threat. Commercial shipping through the Strait of Hormuz has faced continuous disruption since fighting erupted in late February. Because European markets depend heavily on the steady flow of oil through this chokepoint, prolonged instability directly threatens regional supply chains.
The security risk to energy infrastructure is also expanding beyond Iran's borders. On Tuesday, U.S. and Saudi Arabian forces conducted joint strikes against Iran-backed militias in Iraq. These militias had recently targeted oil facilities in Riyadh and Saudi Arabia's Eastern Province.
Additionally, Yemen's Houthis claimed responsibility for attacks on Saudi pipeline infrastructure that feeds the Red Sea export terminal at Yanbu. Strikes on this critical network pose a direct threat to the reliable flow of crude exports out of the region.
U.S. Central Command described the latest operation as a "powerful response" to Tuesday's "attempted Iranian attacks on U.S. forces based in the Middle East." The military action reversed a two-week halt in American fire against Iranian targets, a pause implemented last weekend as diplomats sought to give peace talks "some space."
Hours before the missiles landed, U.S. President Donald Trump publicly telegraphed the retaliation. "We'll be hitting them hard. They're going to get a beating," Trump told a Fox News reporter early Wednesday.
