Markets reacted swiftly to the reactivation of the hostilities in the Middle East: oil futures for both WTI and Brent benchmarks rose as President Trump announced that an Iranian-flagged cargo ship named TOUSKA had been attacked, with the Iranian regime allegedly retaliating by attacking U.S. ships with drones.
Key Takeaways:
The U.S. Navy attacked the TOUSKA on Sunday, spiking Brent crude 5% and risking future ceasefire talks. The IRGC launched a retaliatory drone strike, pushing oil prices further up. Trump sends reps to Islamabad for a 2nd round of talks to end the conflict or strike Iran’s grid next. Oil Futures Show Gains After Hostilities Restart in the Middle EastWhile a ceasefire was announced, and negotiations are taking place between the U.S.- Israel coalition and the Iranian regime, hostilities resumed as the Trump Administration attacked an Iranian cargo ship trying to bypass the ongoing naval blockade on the Strait of Hormuz on Sunday.
Iranian authorities vowed swift retaliation over this incident, and according to Iranian media reports, the Islamic Revolutionary Guard Corps (IRGC) launched drone strikes on American vessels, which might be considered a violation of the ceasefire reached.
“IT’S TIME FOR THE IRAN KILLING MACHINE TO END!” he concluded.
