Iran strikes US allies, Brent crude oil prices continue to rise

Iran Launches Retaliatory Strikes on U.S. Regional Allies as Oil Prices Climb

As the conflict between Iran and the United States enters its sixth day, Iran has launched a series of retaliatory strikes against U.S. military infrastructure across the Persian Gulf, triggering fresh alarms and driving global oil prices higher. Early Friday morning, sirens sounded across Bahrain, Kuwait, and Qatar as Iranian forces targeted facilities hosting U.S. personnel. The escalation follows a series of U.S.-led attacks on Iranian targets, marking the fourth wave of U.S. military action since hostilities flared early Wednesday.

Attacks on U.S. Military Infrastructure

The Iranian army, citing the eleventh phase of its “Thunder” operation, confirmed it targeted U.S. helicopters and P8 surveillance aircraft stationed at the Shakir Airbase in Bahrain. Bahrain’s Interior Ministry urged citizens to seek safety as sirens activated multiple times throughout the day. The Bahrain Defense Force later confirmed it had intercepted and destroyed several aerial attacks launched from Iran. In Kuwait, air defense systems were triggered to intercept incoming Iranian missiles and drones. The Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for these actions, stating they were targeting U.S. military facilities, forces, and logistical support. Additionally, Kuwaiti reports indicated that an offshore drilling platform had sustained damage during the exchange.

Oil Market Volatility and the Strait of Hormuz

The sustained fighting has caused significant volatility in global energy markets. Following the latest wave of attacks, the price of North Sea Brent crude rose by more than 4 percent. The primary driver of this uncertainty is the status of the Strait of Hormuz, a critical waterway for global trade that Iran has threatened to keep closed until further notice. U.S. Central Command (Centcom) has emphasized that the strait is of vital importance to global trade and is not under Iranian control, asserting that U.S. forces stand ready to defend the freedom of civilian shipping. Analysts from MST Marquee noted that while the developments mark a serious escalation, the situation remains below the threshold of open, full-scale war. However, market observers warn that prices are likely to continue rising as long as uncertainty persists regarding the security of the Strait of Hormuz and the continuity of shipping.

Stakes for Global Energy Supplies

The conflict has placed unprecedented pressure on energy supplies. Prior to the war, approximately 20 percent of the world’s crude oil and liquefied natural gas flowed through the Strait of Hormuz. The prolonged closure of this waterway has caused global oil inventories to deplete at a record pace. The International Energy Agency (IEA) has warned that rapidly shrinking buffers, combined with continued disruptions, may signal further price spikes. As of the latest reports, Iranian leadership has vowed to remain vigilant against threats, while U.S. officials maintain that their regional operations are intended to counter what they describe as Iran’s unjustified aggression and harassment. With no immediate end to the hostilities in sight, both regional stability and global energy markets remain in a state of high alert.