U.S. strikes Iran; Brent drops below $90

U.S. forces struck facilities inside Iran that the Pentagon linked to groups responsible for recent attacks on vessels and U.S. personnel in the Gulf. Military officials announced the operations and local authorities reported damage at the targeted sites. Iranian authorities condemned the strikes and promised a response.

Brent futures fell below $90 a barrel in European trading following the strikes. Traders weighed the possible impact on crude flows through the Persian Gulf and factored in demand and inventory signals. Some buyers paused purchases while assessing whether tanker movements would be disrupted or rerouting would be required.

The Strait of Hormuz connects the Persian Gulf to international waters and carries a significant share of seaborne oil exports. Increased attacks or military activity can raise insurance costs for tankers, slow loading and transit times, and prompt some operators to avoid the route, which can add time and expense to deliveries even without direct damage to oil infrastructure.

Shipping companies reported heightened caution in route planning and several insurers began reviewing coverage terms for voyages through the Gulf. Market participants pointed to a mix of risk recalibration and profit-taking after recent price swings as factors behind the immediate market moves.

U.S. military officials described the strikes as limited and intended to degrade capabilities that posed an immediate threat to maritime and coalition personnel. Iranian officials labeled the operations violations of sovereignty and warned of reciprocal measures. Diplomatic contacts among Gulf states and external partners were active as governments sought to reduce the chance of a broader confrontation that could affect global trade flows.

Analysts noted that past incidents in the region have led some shippers to route around the Cape of Good Hope, increasing transit times and costs. Any further military exchanges or attacks on energy infrastructure would prompt firms to reassess supply risk and could alter purchasing and routing decisions in the near term.