Two U.S. service members killed in Jordan by Iranian missile strike
Oil prices surged above $90 a barrel on Monday for the first time in more than a month after the U.S. and Iran sharply escalated hostilities over the weekend, with Iranian missile strikes on a U.S. air base in Jordan killing two American service members and the U.S. striking Iranian military installations. The ceasefire between the two countries has effectively collapsed, and the Strait of Hormuz is again closed to commercial shipping.
The escalation threatens to prolong disruption to global energy markets at a time when crude inventories are already tight, with analysts saying prospects for a diplomatic breakthrough remain dim. Brent crude, the global benchmark, rose 3.2% to $90.93 a barrel on Monday, while U.S. West Texas Intermediate gained 2.8% to $84.05. European natural-gas prices also jumped, topping 60 euros a megawatt-hour.
Iranian missile strikes on Muwaffaq Salti Air Base in Jordan killed two U.S. service members and left a third presumed dead, marking the first American deaths from hostile fire since April. The U.S. targeted Iranian military installations, coastal surveillance sites and communications networks to diminish Tehran’s ability to attack commercial shipping in the Strait of Hormuz, the U.S. Central Command said Sunday.
The ceasefire between the two countries has effectively collapsed, with Iran again declaring the Strait of Hormuz closed and the U.S. reimposing a naval blockade on Iranian ports, sharply reducing shipping through the vital waterway at a time when global crude inventories are already tight.
“The conflict has intensified markedly, with a fresh wave of tit-for-tat attacks underscoring how quickly the situation is deteriorating,” analysts at Deutsche Bank said. “Prospects for any diplomatic breakthrough remain dim.”