US strikes Iranian island and tanker catches fire as oil prices rise

The United States conducted military strikes on Iran's Kharg Island, a major hub for its oil exports. President Trump stated the strikes targeted military sites on the island and claimed all military targets were 'obliterated.' Iranian media reported that the country's oil infrastructure on the island was not damaged.

Following the strikes, a fire broke out at a key oil terminal in the United Arab Emirates, and a US oil tanker was reported ablaze in the Persian Gulf. Iran's foreign minister stated the Strait of Hormuz remains open to all shipping except vessels from the US and Israel. In response to the market disruption, the US announced it would begin releasing millions of barrels of oil from its strategic reserve and temporarily eased some sanctions on Russian oil.

Global oil prices rose sharply due to the attacks and the ongoing tensions around the Strait of Hormuz, a critical waterway for world oil shipments. Some banks revised their price forecasts higher, with predictions of crude oil reaching $150 per barrel.