US strikes kill 3 on Iran's Qeshm Island as oil tops $100

US airstrikes killed three civilians on Iran's Qeshm Island late Wednesday, the deadliest single incident in a widening campaign that has pushed Brent crude above $100 a barrel and threatened shipping through the Strait of Hormuz.

"The strikes aimed to further diminish threats posed by Iran and its proxies to American forces, commercial shipping, and neighboring Gulf nations," US Central Command said in a statement.

The two-hour operation struck IRGC command centers, missile and drone facilities, coastal surveillance sites and maritime capabilities across Iran's southern provinces. Iran's Foreign Ministry spokesman Esmaeil Baghaei condemned the attack on a residential area that killed Qaisar Jafari, his wife Zahra and their 2-year-old son Sina, comparing it to Islamic State terrorism. Three IRGC members also died in Zanjan province, state media reported.

The escalation threatens to disrupt the Strait of Hormuz, through which about a fifth of the world's oil supply transits. Iran's Foreign Ministry said the waterway is effectively closed because of US actions, while talks with Oman over joint management continue.

Oil spikes above $100 as supply routes face dual threat

Brent crude surged more than 6% to about $100 a barrel, the highest since May, before a preliminary peace agreement collapsed. The price spike reflects mounting concern over simultaneous threats to two of the world's most critical energy chokepoints.

Yemen's Iran-backed Houthi rebels said they struck two Saudi oil tankers in the Red Sea, potentially widening the conflict to the Bab el-Mandeb Strait, through which about 12% of global trade passes. The Houthis announced a blockade of Saudi-linked shipping through the waterway earlier this week. Saudi Arabia has diverted millions of barrels a day of oil exports to its Yanbu port on the Red Sea via an overland pipeline as the Persian Gulf route remains contested.

The last time Brent traded above $100 during a Gulf confrontation was in early 2022 after Russia's invasion of Ukraine, when the benchmark briefly touched $130. That episode saw global gasoline prices surge and central banks factor energy-driven inflation into rate decisions.

Iran retaliates as regional spillover widens

Iran's Islamic Revolutionary Guard Corps retaliated by striking the Azraq military base in Jordan, which said its air defenses intercepted five missiles. In Kuwait, an Iranian attack hit a building owned by a Chinese company in the north, killing one worker and causing significant damage, Kuwait's Defense Ministry said.

The IRGC also issued a public warning urging civilians in seven Middle Eastern countries — the United Arab Emirates, Bahrain, Jordan, Kuwait, Qatar, Saudi Arabia and Syria — to stay at least 500 meters away from US military positions, American-owned hotels, banks, companies and properties linked to President Donald Trump.

Trump threatened "major military punishment" against the Houthis if attacks on ships continue, writing on social media that "the US will hold Iran responsible, in that the Houthis are a Surrogate and/or Proxy of Iran." US Secretary of State Marco Rubio said Trump's policy is "a head for an eye," adding that "the price will continue to get higher every single night until they come to their senses."

Iran's health ministry said 55 people have been killed and 629 wounded since renewed US airstrikes began on June 27. The US Treasury announced new sanctions on two Iranian firms it said are integral to an IRGC-backed scheme forcing commercial vessels to buy insurance to transit the Strait of Hormuz.

Iraq's Prime Minister Ali al-Zaidi visited Tehran on Thursday to call for peace and dialogue, promising not to allow Iraqi territory to be used for attacks on Iran. Pakistan also sought to reassure markets, insisting that talks between Tehran and Washington are still under way.

Former Pentagon official David Des Roches said the latest US strikes were "not a very overwhelming attack," suggesting the administration may be "trying to keep things proportionate, or to keep things open for diplomacy." Ryan Bohl, a senior Middle East analyst at RANE Network, said the US has two likely escalation options: repeating the pre-Friday strategy of targeting Iran's blockade infrastructure, or escalating toward the bridges and power plant strategy Trump has repeatedly threatened.

This article is for informational purposes only and does not constitute investment advice.