U.S. Strikes Iran, Oil Surges Past $90

The United States struck two military facilities on Iran's Larak Island on August 30, the first known American attack on Iranian soil in over a month. A U.S. official said the strike targeted launchers preparing to lay sea mines in the Strait of Hormuz. Iran's Islamic Revolutionary Guard Corps retaliated on August 31 by launching ballistic missiles at U.S. military bases in Jordan. The IRGC reported casualties from the U.S. strike and vowed punishment. The escalating conflict sent Brent crude above $90 a barrel and WTI past $85 in early trading on August 31. The Strait of Hormuz, a chokepoint for about 20% of global oil, remains largely closed, with transits reduced to a fraction of normal levels. The U.S. had declared the strait cleared of mines just days earlier. The situation remains volatile following Iran's missile response.