US, Iran exchange strikes as oil prices climb above $100

The United States and Iran have exchanged further attacks on shipping and military targets in a sharp escalation of their six-month conflict, sending global oil prices above $100 a barrel and raising fresh concerns about the future of maritime traffic through the Strait of Hormuz.

Iran said it launched attacks against vessels near the strategic waterway on September 9, following a US military operation that destroyed five Iranian oil tankers near Kharg Island, Iran's major oil-export hub.

The US military said the tanker strikes were carried out in response to Iranian attempts to attack a US Navy warship during the previous two days.

Iran subsequently launched a ballistic missile attack towards Jordan, with Amman saying its forces intercepted 18 of 20 missiles. Two missiles reportedly landed in unpopulated areas, with no casualties or significant damage reported.

The Islamic Revolutionary Guards Corps (IRGC) also claimed it had attacked two US vessels, eight oil tankers and 10 other vessels it described as "noncompliant" as they attempted to navigate the Strait of Hormuz.

The developments have intensified concerns over one of the world's most important energy shipping routes. The waterway, which links the Persian Gulf with the Gulf of Oman and the Arabian Sea, has been effectively closed to much commercial traffic since the conflict began in February.

Earlier in the war, Iran established a shipping route close to its coastline through the strait and warned that vessels attempting to use a US-backed route along the Omani side could come under attack.

The United Kingdom Maritime Trade Operations, which operates in coordination with the British Navy, reported that several vessels in the Gulf of Oman and Persian Gulf had been subjected to disabling fire amid continuing military activity.

The IRGC also warned tanker crews at ports in Kuwait and Bahrain to evacuate. Both countries are US allies, adding to concerns that the conflict could spread further across the Gulf region.

Shipping activity has already fallen sharply. Data from commodities and shipping analytics firm Kpler showed that only six commercial vessels passed through the Strait of Hormuz on September 8, significantly below recent average traffic levels.

Iran has also expanded its maritime restrictions, declaring parts of the Gulf of Oman and Arabian Sea a new "prohibited zone". The IRGC warned that vessels entering the designated areas could face what it described as "sanctions".

Iran's Foreign Ministry condemned the destruction of its oil tankers, describing the US action as an "overt threat" to regional and international peace and security. Tehran said the attacks risked further increasing tensions across the region.

US Secretary of State Marco Rubio warned that Iran would continue to lose oil tankers if it attempted to attack American naval forces.

Rubio said Washington would respond to each Iranian attempt to target US ships by striking additional tankers, signalling that the confrontation at sea could continue.

The latest military escalation comes as the United States increases economic pressure on Tehran. Washington announced additional sanctions targeting Iran's aviation industry and companies accused of assisting the country in obtaining aircraft and sensitive technology.

Iran's economic difficulties have also deepened, with the rial falling to a new record low against major international currencies.

The United States has imposed a naval blockade affecting Iranian vessels and ports as part of its campaign to restrict Tehran's oil exports, which remain a critical source of government revenue.

The disruption to shipping has already begun to affect international energy markets. Brent crude rose to $100 a barrel for the first time since July as traders assessed the growing risk that prolonged fighting could further restrict oil supplies moving through the Gulf.

With the Strait of Hormuz handling a significant share of global energy shipments, continued attacks or an extended shutdown could place further upward pressure on fuel and energy prices worldwide.

The latest exchange of strikes has therefore increased both the immediate military risks and the potential economic consequences, with governments and shipping operators closely monitoring developments across the Gulf.