Oil prices rose on Monday after renewed fighting between the United States and Iran, largely breaking a ceasefire that had been in place since April 8. That’s bad news for anyone nervous about the days and weeks following President Donald Trump’s decision to launch a war that managed to drive up energy prices around the world.
President Donald Trump began by declaring that the United States will escort ships from “neutral” countries through the Strait of Hormuz starting Monday morning. Project Freedom. The US military claimed two on Monday There were US-flagged merchant ships They were protected while crossing the straitalthough the US is not a neutral country in this conflict.
Iran responded by firing missiles and drones at US-aligned targets on Monday. The Wall Street Journala drone struck Fujairah, an important oil hub in the United Arab Emirates, and a fire broke out. At least three ships were shot down by Iran, all offshore UAE coastincluding the Marshall Islands-flagged JV Innovation, which was shot down by a drone and Panama flag Korean cargo ship According to the magazine, HMM Namu, which was hit by an explosive device.
According to the Associated Press, the UAE described the missile and drone attacks as “renewed treacherous Iranian aggression.” However, the country’s army claimed that most of the attacks were successfully defended.
“A quadruple cruise missile has been detected coming from Iran towards the country,” the UAE Ministry of Defense said in a statement. CNN. “Three missiles were successfully shot over the territorial waters of the country, and the other fell into the sea.”
For its part, the US military has taken responsibility for the destruction of six small boats used by Iran to attack other vessels. Trump wrote Monday afternoon that it was actually seven boats and called on South Korea to “come and join the mission” after the cargo ship was shot down. Trump also promoted a press conference Tuesday morning by Defense Secretary Pete Hegseth.
CENTCOM Commander Brad Cooper told reporters on Monday that Iran’s ability to strike with small boats has been significantly reduced.
“I’ve probably transited the Strait of Hormuz 100 times in my career. You usually see 20 to 40 small boats come out in a pack. We saw six today and we quickly eliminated them,” Cooper said, according to a portion of the call aired on Fox News.
“I think it’s an example of their disempowerment,” Cooper said. “It doesn’t mean everything is gone, but it’s gotten a lot worse.”
But Iran still has many missiles and drones that have caused serious damage to oil infrastructure in the past. About 20% of the world’s oil and liquid natural gas supplies pass through the Strait of Hormuz, which is effectively closed by Iranian forces.
Cooper told reporters that the US military did not physically escort the two US-flagged ships from the Strait of Hormuz on Monday. The road has been cleared and “confirmed”, although there were few details about what that entailed.
“We uniquely used our own military technology to clear a free lane in the throat that was not obstructed in any way, shape or form,” Cooper said. The Wall Street Journal.
Renewed fighting sent Brent, the global benchmark for oil, up more than 5% on Monday. $113 a barrel. The Dow Jones Industrial Average was down a relatively modest 450 points on Monday as of this writing.
The U.S. wants to encourage ships to pass through the Strait of Hormuz with Project Freedom, though it’s unclear if any will attempt it. U.N. spokesman Stephane Dujarric told the AP on Monday that the global body is “still trying to fully understand” what the U.S. meant when it said the Strait was open for passage.
“There’s not a lot of clarity at the moment, but what we don’t want to see is a return to overt kinetic activity in this area,” Dujarric said.
It’s clear that Trump is trying to bluff his way into opening the Strait of Hormuz, but as long as Iran still has missiles, drones and small boats that can threaten ships, that seems like a recipe for failure.
According to AAA, the current national average price for a gallon of gas in the US is $4.45, up from $2.98 just before President Trump and Israel launched a war against Iran on February 28. Airfare has become more expensive, especially for international travel, according to the training panel. Kayak.
For example, just before the war, a flight from the United States to Hong Kong averaged $1,005. The same flight averaged $1,534 on April 20, the latest date with available data. Before the war, a flight to Rome, Italy, averaged $847. On April 20, it rose to $1,266.
