Diplomacy Fails; US Prepares to Retaliate Against Iran
US President Donald Trump has affirmed that Washington will retaliate against Iran following a recent attack targeting a US military base in Jordan. Trump stated that Iran would face a severe retaliatory strike.
This statement immediately drove oil prices back up, pushing them past US$90 per barrel. Markets fear that the reignited conflict will exacerbate energy supply disruptions from the Middle East.
A brief lull in hostilities ended after the US reported being the target of a surprise attack by Iran. Iranian media also reported that US forces struck locations in West Azerbaijan Province.
The United States and Saudi Arabia also launched attacks against Iran-backed armed groups in Iraq. These strikes followed Saudi Arabia's interception of a drone allegedly targeting its oil facilities; at least 20 members of Iraqi militias were reportedly killed.
Tensions remain high as the Strait of Hormuz stays effectively closed, and talks between Iran and Oman regarding the reopening of shipping lanes have yet to yield an agreement. Iran also claimed to have intercepted three tankers accused of using illegal routes.
A conflict spreading to Iraq, the Red Sea, and the Bab el-Mandeb Strait could keep oil prices elevated and heighten the risk of global inflation. Such conditions could potentially bolster the US dollar, pressure stock markets, and cause gold prices to fluctuate amidst rising war risks and high interest rates. (arl)
Source: Newsmaker.id
