War returns to West Asia, oil seesaws as Hormuz bleeds
New attacks have shattered an interim peace agreement.
Also Read: US-Iran war: Trump cuts Hormuz toll plan by 20%, wants Gulf investment deals instead
After Trump’s post, oil gave back almost all of its gains in the session, following the rise it had previously experienced as the conflicts escalated. Brent crude oil rose above $87 per barrel for the first time in a month and fell to around $84 at the time the news went live.
The global gauge rose more than 5%, and several other key market gauges, including those in West Asia, also rose.
Attacks continue
Wall Street was relatively calm after data showed US inflation was lower than expected. Most Gulf stock markets closed lower and European shares fell, but Asia’s Kospi and Nikkei rose.
Also Read: Trump’s Strait of Hormuz Plan Revealed: Can US impose fees on ships and what does this mean for India?
Iran reported new attacks on the Gulf island of Qeshm late Tuesday, although state media said the explosions heard in Andimeshk were not an enemy attack. In the morning, the USA continued its attacks for 5 hours. Air raid sirens warned of another missile attack in Bahrain in the evening.
Two Emirati oil tankers were hit by Iranian cruise missiles in the Strait of Hormuz, the UAE Ministry of Defense said on Tuesday, in the latest tension in the strategic waterway.
“I have decided to replace the 20% U.S. Reimbursement Fee with Trade and Investment Agreements between the various Gulf States to the United States,” Trump said on social media. “These investments will be BIG, but they will also be extraordinarily good for them and their future.”
