US Launches Direct Strikes on Iran, Sending Oil Prices Above $90

The United States has launched direct military strikes against Iran, marking a major escalation in a regional conflict now entering its fifth month and roiling global energy markets. The action follows a series of attacks across the Middle East, drawing in multiple countries and heightening investor concerns over a wider war.

Escalation and Market Impact

U.S. Central Command confirmed the operation began at 8:00 p.m. ET on Wednesday, describing the strikes as a "powerful response to yesterday’s attempted Iranian attacks on U.S. forces." The announcement sent crude oil prices soaring in one of the sharpest rallies of the conflict.

• Brent crude futures surged more than 8%, pushing the international benchmark well above $90 a barrel.
• The price spike reversed an earlier decline this week, underscoring the market's sensitivity to the growing geopolitical risk premium.

The U.S. action came after President Donald Trump vowed to retaliate, telling reporters, "So it’s our turn," and promising to "hit them very hard."

A Widening Conflict

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The direct U.S.-Iran confrontation caps a day of rapidly spreading hostilities across the region. Earlier on Wednesday, a U.S.-owned gas storage tanker was reportedly hit by a drone at Egypt's Damietta port, according to British maritime security firm Ambrey. Egypt's petroleum ministry confirmed a fire but did not mention an attack.

Separately, U.S. and Saudi forces conducted joint strikes against Iran-aligned paramilitary groups in Iraq. In response to those strikes, which killed at least 20 fighters according to the groups, Iran's Revolutionary Guards confirmed they had fired ballistic missiles at U.S. military installations in Jordan and targeted tankers in the Strait of Hormuz.

Regional Fallout and Diplomatic Tensions

The joint U.S.-Saudi strikes in Iraq, a first for Riyadh in this conflict, have exposed deep divisions. The Iraqi presidency condemned the attacks as a "flagrant violation of Iraq’s sovereignty," while the prime minister's office urged all parties to avoid further escalation.

Following the joint operation, Saudi Arabia's defense minister met with U.S. officials in Washington and urged the administration not to broaden the conflict further, two sources told Reuters. The sources noted that further escalation would open the door to "major unknown risks."