President Donald Trump ordered the strikes after Iran fired multiple ballistic missiles at American forces in the Gulf region earlier that day. All of those missiles were intercepted, but according to Seth Krummrich, a retired U.S. Army colonel and vice president at Global Guardian, the Tuesday assault deviated from Iran's prior practice of only answering U.S. strikes, indicating Tehran's readiness to resume armed conflict.
In a statement carried by Iranian state media, the Guard said it "will punish the aggressor today." The Guard additionally declared it holds "full control" over the Strait of Hormuz and vowed that no "stranger who has come from thousands of kilometres away" will be permitted to interfere.
Trump, in a Fox News interview, said "We'll be hitting them hard. They're going to get a beating." He further called on Congress to revise a Russia sanctions measure so he could impose tariffs on Iran, telling reporters, "I'd like them to add Iran as tariffs, not just as sanctions."
In Asian trading on Thursday, oil prices edged down a bit.
Get the market news that matters in a five-minute read with Market Briefs, our free daily newsletter
Tensions had been building for weeks. Yemen's Houthi group claimed to have attacked Saudi pipelines feeding the Yanbu terminal on the Red Sea. According to reports, the kingdom's Jazan refinery, which processes 400,000 barrels daily, was closed after Houthi assaults over the weekend.
Warren Patterson, who leads commodities strategy at ING Bank, said these growing tensions are pouring "cold water on the idea of a swift de-escalation in the Persian Gulf" and reducing expectations for renewed talks. Patterson noted that attacks on Saudi oil facilities increase the likelihood of long-lasting supply interruptions.
Ship movements through the Strait of Hormuz have virtually stopped. Tehran turned down Oman's plan to split shipping oversight equally through this vital waterway, instead insisting on a deal that grants it full authority over incoming vessels and partial authority over outgoing ones.
After disruptions subside, the extra output supports the outlook of a comfortably supplied market until 2027.
UN Secretary-General Antonio Guterres cautioned that an extended war could pull the broader region into the conflict. Israeli Prime Minister Benjamin Netanyahu held a 90-minute White House meeting with Trump described as "productive" regarding the Iran war.
Krummrich said Iran's move suggests it intends to "respond more aggressively to future U.S. military action and may be moving away from diplomacy." Krummrich added that critical infrastructure including airports, electrical grids, water desalination facilities, and Gulf energy sites could face further attacks.
U.S. goods trade with Iran was $60.0 million in 2025.
Join Market Briefs, our free daily newsletter, for a quick daily rundown of the markets
