US Strikes Iranian Rocket Launchers on Strait of Hormuz as Crude Oil Prices Rise

NEW DELHI — United States military forces struck Iranian rocket launchers on the Strait of Hormuz on Sunday, marking the first military action in a month and breaking a lull in an intermittent war that has lasted for more than six months. According to Tim Hawkins, a spokesperson for the US Central Command, forces with the Iranian Revolutionary Guard Corps were observed preparing to launch rockets equipped with sea mines into the strait. The US military had completed clearing sea mines from the strait's international shipping routes just last week.

Semiofficial news outlets in Iran reported sounds of explosions near Larak island on the strait. The Guard issued a statement via Iran's state broadcaster noting the death and injury of several fighters and compatriots. Subsequently, Iranian state television broadcast footage of ballistic missiles being fired at US bases in Jordan in retaliation for the American strikes. Jordan's armed forces confirmed that they intercepted eight missiles entering the country's airspace early Monday.

The latest clashes follow a period where the Trump administration stated it would shift its focus toward increasing economic pressure rather than military action to end the conflict. The economic strategy centers on penalizing any country or entity continuing to conduct business with Tehran. However, the US military's turn to sanctions also coincided with concerns over diminished munitions stockpiles after months of warfare, raising questions about military readiness globally.

The renewed hostility has impacted global commodity markets. Crude oil prices rose on Sunday following the US attack. The price for a barrel of US oil increased by 1.8 percent to $84.94, while Brent crude, the international benchmark, rose 1.9 percent to $89.79 per barrel.

Commercial shipping through the Strait of Hormuz continues to face severe disruptions. While President Donald Trump declared that the strait is open and noted that 24 vessels passed through last week, traffic remains at a fraction of the roughly 130 vessels that transited daily before the war began. A multinational coalition overseen by the US Navy confirmed that commercial traffic remains at reduced levels. Additionally, the United Kingdom Maritime Trade Organization reported that an unknown projectile struck a tanker ship north of Khasab, Oman, though no casualties or environmental impacts were reported.

Iranian officials maintain that the country has suffered $270 billion in direct and indirect damage during the campaign, which the US and Israel state has heavily impacted Iran's navy and air force. Despite these losses, Iran retains sufficient drones and missiles to target vessels transiting the vital waterway through which 20 percent of the world's oil normally flows.

"Geopolitical tensions in critical trade corridors like the Strait of Hormuz have an immediate and direct impact on global supply chains and commodity markets. When critical energy routes face disruption, the resulting volatility in crude oil prices increases operational and logistical costs for businesses worldwide. Founders and business leaders must account for macroeconomic instability and energy price fluctuations in their strategic planning during periods of prolonged international conflict." — Dr. Shishir Gupta, Founder & CEO, StartupLanes