US Expands Strikes Across Iran as Oil Jumps 7% Above $100 on Red Sea Attacks
Updated
Updated · The Guardian · Jul 24
US Expands Strikes Across Iran as Oil Jumps 7% Above $100 on Red Sea Attacks
3 articles · Updated · The Guardian · Jul 24
Summary
Friday's US strikes reached as far as the Caspian Sea, widening the campaign after Houthi attacks on two Saudi tankers opened a second shipping front at the Bab el-Mandeb.
Iran answered with missile and drone fire at US targets in Bahrain, Jordan and Kuwait, while Tehran and Washington remained split over any ceasefire tied to control of the Strait of Hormuz.
Trump threatened "major military punishment" for Iran and the Houthis over further Red Sea attacks and warned China and Russia against supplying Tehran with weapons.
Oil rose 7% to above $100 a barrel, southern Red Sea insurance costs doubled for some shippers, and Hormuz tanker traffic fell to one vessel on Thursday.
The disruption is spreading beyond energy markets: Coca-Cola raised Diet Coke prices in India by more than 10% as the conflict strained aluminum-can supply chains.
Will Iraq's delicate balancing act collapse as it deepens economic ties with Tehran during a massive regional military confrontation?
Could the closure of two major Middle East maritime chokepoints trigger a global supply chain collapse and send oil past $120?
Double Blockade, Rising Death Toll: The 2026 U.S.-Iran War and Its Global Consequences
Overview
The collapse of the June 2026 peace negotiations triggered a rapid military escalation in the Middle East, with the U.S. launching sustained airstrikes against Iran and reinstating a naval blockade. In response, Iran closed the Strait of Hormuz and, together with Houthi allies, blocked the Bab el-Mandeb Strait, causing global oil supply disruptions and a sharp rise in energy prices. The resulting economic shock led to higher fuel costs worldwide and soaring shipping insurance. Diplomatic efforts failed over disputes about the strait and Iran’s nuclear program, while regional fighting and infrastructure attacks caused mass displacement, civilian casualties, and a deepening humanitarian crisis.