US-Iran War Escalates as Oil Price Surges Above $100 a Barrel
The US and Iran have escalated their six-month-long war, with both sides trading strikes in recent weeks. The latest flare-up saw Iran claim to have attacked 10 ships near the strait of Hormuz, including two US vessels and eight oil tankers. The IRGC said the vessels were 'noncompliant', a likely reference to ships that tried to traverse the waterway without its permission.
The attacks sent the oil price above $100 a barrel for the first time since July, with up to 20% of the world's oil and gas transiting the strait. The US had said it destroyed five Iranian oil tankers overnight, publishing videos of ships on fire as part of its response to Iran targeting a US navy warship twice in the previous two days.
The conflict has also taken on an increasingly regional dimension, with the Iran-aligned Houthi movement in Yemen trading strikes with Saudi Arabia. The Houthis launched a wave of attacks on four cities in Saudi Arabia on Tuesday, causing large fires at oil installations and wounding 73 people.