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US Strikes Iran, Oil Prices Surge

Financial Times Markets •
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The U.S. military launched a second consecutive day of strikes against Iran, escalating tensions after President Donald Trump declared a ceasefire "over." U.S. Central Command stated that "additional strikes against Iran" aimed to degrade Tehran's ability to threaten navigation in the Strait of Hormuz. These actions followed Iran's attacks on three commercial ships, prompting Trump to vow further escalation if similar incidents recur.

The renewed conflict has shattered a fragile ceasefire that had promised to reopen the vital shipping lane, causing global energy prices to spike. Brent crude futures jumped 6.6% in after-hours trading to $79.06 per barrel, having earlier surpassed $80. The U.S. reportedly targeted over 80 Iranian military sites, including Kharg Island, a critical oil export hub, and fast boats.

Vice President JD Vance affirmed the U.S. commitment to keeping the Strait of Hormuz open, stating that further Iranian aggression would be met with forceful retaliation. Iran's Islamic Revolutionary Guard Corps claimed to have responded with missile and drone strikes on U.S. military facilities. Despite the heightened military activity, Trump indicated he does not anticipate a full-scale war, leaving the door open for continued diplomatic talks.