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US launches new airstrikes in Iran, oil prices jump 7.3%

The US has announced new airstrikes in Iran, following a multi-day pause in direct attacks, leading to a significant rise in oil prices.

  • The US is conducting airstrikes in Iran after a several-day lull in direct attacks.
  • Brent crude oil prices increased by 7.3% to $88 a barrel following the renewed hostilities.
  • Iran launched missiles at US military installations in Jordan on Wednesday.

The United States has confirmed it is conducting airstrikes in Iran, marking a resumption of direct US attacks on targets in the country after a lull of several days. The US military stated these attacks are a "powerful response to yesterday's attempted Iranian attacks on US forces based in the Middle East."

On Wednesday, Iran launched a barrage of missiles at American military installations in Jordan. Concurrently, the US partnered with Saudi Arabia to strike Tehran-backed militias in Iraq, resulting in the deaths of at least 20 fighters and six Iranian advisers.

The renewed hostilities have caused Brent crude, the international oil standard, to jump 7.3% to $88 a barrel. The office of Iraqi President Nizar Amidi described the US-Saudi airstrikes on logistics and weapons sites in eastern Iraq as "a blatant violation of Iraq’s sovereignty."

Elsewhere, drone strikes reportedly ignited fires on two natural gas vessels at the Egyptian port of Damietta, according to British maritime security firm Ambrey. It was not immediately clear who was responsible for these strikes on a US-owned floating storage facility and a Greek-owned tanker, and no injuries were reported.

Why this matters: The flare-up on multiple fronts after a period of relative calm has increased the risk of a return to all-out war and highlighted the difficulty of de-escalating the five-month conflict.

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