Iran war: Oil gains as Trump threatens to ‘smack’ Iran harder
Crude oil prices have extended gains after US President Donald Trump threatened to attack Iran further, following the latest exchange of fire over the weekend.
IMAGE: Getty Images
Speaking at the US Oval Office yesterday, Trump said the US was ready to “smack” Iran, if hostilities continued.
On Sunday, Trump shared an AI-generated video on social media platform Truth Social, depicting drone and missile strikes on Kharg Island. The caption read “Kharg Island being blown to smithereens!!!”
Iran responded to the video on Monday, calling it “laughable.”
Kharg Island, situated in the northern part of the Persian Gulf, handles about 90% of oil and petroleum exports from Iran.
Iran and US resume direct exchange of fire
Washington and Tehran have resumed direct strikes for the first time since late July, reigniting supply concerns in a market already plagued with instability.
The US Central Command (CENTCOM) struck two Iranian rocket launchers on Larak Island, situated inside the Strait of Hormuz, it said on social media platform X.
Iran retaliated to the strikes by targeting US bases in Jordan and the UAE. The Iranian Islamic Revolutionary Guard Corps (IRGC) vowed “response and punishment” for the strikes, the BBC reported.
Safety issues in the Strait of Hormuz persist
Another tanker came under an air assault whilst transiting outbound in the Strait of Hormuz on Monday, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.
The vessel was around 17 nautical miles east of Khasab, Oman, when three unknown projectiles hit it, the UKMTO reported.
As of Monday, 10 vessels attempted to transit the strait – four inbound, six outbound – market intelligence provider Windward reported.
A supertanker caught fire after hitting two naval mines in the southern region of the Strait of Hormuz, Iranian state media reported, citing the IRGC.
In a bid to bypass Tehran's mandates in the northern corridor, vessels navigating the Strait of Hormuz have increasingly hugged Oman's southern coastline.
The US CENTCOM later dismissed the claim, stating “no ships have hit mines in the Strait of Hormuz”.
The fresh hostilities and strikes threaten to spook commercial vessels from transiting the region, further slashing Persian Gulf crude outflows.
By Aparupa Mazumder
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