US Strikes Dozens of IRGC Targets in Iran After Missile Attack, Oil Prices Surge

The U.S. military has conducted a major series of airstrikes against dozens of targets in Iran belonging to the Islamic Revolutionary Guard Corps (IRGC), a direct retaliation for ballistic missiles fired at American forces in the region. The operation has sharply escalated the five-month-long conflict, roiling global energy markets and raising fears of a wider war.

Retaliatory Strikes and Regional Escalation

U.S. Central Command (CENTCOM) announced that the two-hour operation began at 0000 GMT on Thursday, targeting IRGC military command centers and drone facilities. In a statement, CENTCOM said the strikes were intended to "diminish threats posed by Iran and its proxies to American forces, commercial shipping, and neighbouring Gulf countries." The U.S. action came after Iran confirmed firing ballistic missiles at U.S. troops in Jordan on Wednesday, all of which CENTCOM said were intercepted.

The conflict is expanding across multiple fronts. Key developments include:

• Iraq: U.S. and Saudi forces conducted joint strikes against Iran-aligned groups in eastern Iraq. This marked the first time Riyadh has publicly joined Washington in such an attack. Iraq's Popular Mobilisation Forces reported at least 20 members were killed.
• Jordan: The country's armed forces stated they thwarted a separate Iranian attack, intercepting five missiles aimed at the kingdom.
• Egypt: A drone struck a U.S.-owned gas storage tanker at the port of Damietta, according to British maritime security firm Ambrey, though the party responsible was not immediately clear.

Market Impact: Oil Prices Spike on Hormuz Tensions

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The military escalation sent a shockwave through commodity markets, with oil prices posting one of their sharpest gains of the conflict. Brent crude futures surged more than 8% on Wednesday, pushing the global benchmark well above $90 a barrel. Prices saw a slight retreat on Thursday.

The primary driver for the market's anxiety is the security of the Strait of Hormuz, a critical chokepoint for global energy supplies. Before the war, the waterway carried about a fifth of the world's oil and liquefied natural gas. Iran has recently claimed control over the strait and said it struck three tankers attempting to transit an unauthorized route, further threatening supply stability.

Diplomatic and Political Backdrop

The latest exchange of fire follows the collapse of a temporary ceasefire agreement in June. While U.S. President Trump has stated he would hit Iran hard for its attacks, Washington officially maintains it is also seeking a peace deal.

However, regional allies are showing signs of strain. Following the joint strikes in Iraq, Saudi Arabia's defense minister met with U.S. officials and urged the administration not to escalate the conflict further, according to sources cited by Reuters. The Iraqi presidency also denounced the U.S.-Saudi strikes on its territory as a "flagrant violation of Iraq’s sovereignty."