The US carried out new attacks on Iran, hitting a military site in Bandar Abbas as the standoff between the two countries widened despite a fragile ceasefire and ongoing talks to end a three-month conflict.
US Central Command said its forces also shot down four Iranian drones that posed a threat around the Strait of Hormuz. The market reaction was immediate: Brent crude rose 3.75% to $97.83 a barrel, while US-traded crude climbed 4% to $92.22.
The strikes landed at a dangerous moment. Washington and Tehran are still holding talks to end the three-month-long conflict, but the ceasefire has not stopped the fighting from spilling into the waterway that carries around a fifth of global oil and liquefied natural gas supplies. The Strait of Hormuz has effectively been closed, turning every new military move into a potential shock for energy markets and shipping.
That risk has been building since 28 February, when the US and Israel launched attacks on Iran and Tehran threatened to hit vessels using the shipping route. Since then, the hostilities have unfolded inside a ceasefire that exists on paper but remains vulnerable to the next drone flight, the next strike, or the next warning from either side.
Bandar Abbas matters because it sits at the edge of the narrow passage that has become the center of the conflict. The latest attacks show that neither side has fully stepped back, even as the talks continue. For now, the ceasefire is holding just enough to keep negotiations alive, but not enough to restore normal traffic through one of the world’s most important energy arteries.
The next question is whether the diplomacy can outlast the military exchanges. If it cannot, the Strait of Hormuz may stay shut, and oil traders will keep pricing in the chance that the conflict between the US and Iran is still far from over.
