Brent crude jumped 7.9% to $90.74 per barrel after Iran launched ballistic missiles targeting U.S. forces in Jordan, reigniting fears of disruption in key Middle Eastern shipping routes. The missile attack, intercepted by U.S. forces with no casualties reported, prompted President Donald Trump to warn of a strong retaliation, saying "we're going to hit them very hard."
In response to escalating tensions, American and Saudi forces conducted joint strikes against Iran-backed militias in Iraq, resulting in at least 20 deaths among the Popular Mobilization Forces. Saudi Arabia’s more direct military engagement signals a widening conflict in the region, which traders now see as a serious risk to oil supply through strategic chokepoints like the Strait of Hormuz and Bab el-Mandeb.
Alongside geopolitical concerns, U.S. crude inventories dropped by 7.2 million barrels to their lowest since 2018, adding further upward pressure on prices. Meanwhile, the Dow tumbled 2.14%, with the S&P 500 and Nasdaq also closing sharply lower as investors weighed the fallout. Bitcoin briefly climbed back to $64,435 after the Federal Reserve kept interest rates steady, offering some respite amid the market turbulence.
