Iran denies nuclear work at Mount Ghaen as US strikes hit 11th night

Iran denied any nuclear activity at Mount Ghaen on Tuesday, calling the US focus on the site a pretext for aggression as American airstrikes entered an 11th night and Brent crude topped $94 a barrel.

"The US obsession with Mount Ghaen is merely a fabricated excuse for its aggression, destruction and sabotage," said Esmail Baghaei, spokesperson for Iran's Foreign Ministry, in a statement carried by state media.

Brent crude traded above $94 a barrel, while the US dollar index rose 0.5% to 100.27 as investors sought safe havens. The yield on the 10-year US Treasury note climbed as traders pushed expectations for the first Federal Reserve rate cut to September, according to Goldman Sachs. The international crude benchmark has surged as the conflict disrupted shipping through the Strait of Hormuz, a waterway that handled about one-fifth of the world's crude oil and natural gas before the war.

The standoff over Mount Ghaen — a fortified underground site near one of Iran's primary nuclear enrichment facilities — threatens to widen a conflict that has already wounded more than 500 US personnel and pushed US gasoline to an average of $4 a gallon. President Donald Trump said Tuesday the US would soon target the area, a move Iran's military said would be considered a major escalation triggering attacks on all US interests across the region. "We have no interest in meeting" with Iranian officials, Trump told reporters from the Oval Office.

Strait of Hormuz Blockade Tightens

Iran's paramilitary Revolutionary Guard claimed responsibility for an attack on a tanker in the Strait of Hormuz early Tuesday, forcing the crew to abandon the vessel. US Central Command said it has redirected eight commercial vessels and disabled one to enforce the blockade. The route close to Oman's shores — the corridor the US military had encouraged ships to use to avoid Iranian control — has become a new flashpoint.

The blockade has sent ripple effects across energy markets. The last time a major shipping chokepoint faced sustained disruption of this magnitude was during the 2019 Abqaiq-Khurais attacks, when Brent spiked nearly 15% in a single day. This conflict has been more prolonged, with US strikes hitting Iranian military command centers, maritime capabilities, and missile launch sites across at least five provinces over 11 consecutive nights.

Civilian Infrastructure Under Attack

Iran has struck US allies across the region, targeting desalination and power plants in Kuwait for a fourth straight day. About 90% of Kuwait's drinking water comes from desalination, making the attacks a matter of life and death for the tiny Gulf nation. Jordan reported five drones and three missiles were shot down, while Bahrain sounded missile alert sirens as another barrage targeted the island kingdom that hosts the US Navy's 5th Fleet.

United Nations Secretary-General Antonio Guterres called the attacks on civilian infrastructure "unacceptable" and a violation of international law. Pakistan, which brokered last month's interim ceasefire that has since collapsed, has been trying to revive diplomacy. Iranian Interior Minister Eskandar Momeni met Pakistani army chief Field Marshal Asim Munir and Prime Minister Shehbaz Sharif this week, but no new arrangement has emerged.

The conflict has reshaped currency markets as well. The dollar's rally to 100.27 reflects both safe-haven demand and the relative strength of the US as the world's biggest oil exporter — when crude prices rise, the US economy benefits more than energy-importing regions like Europe or Japan, according to analysts. Traders who entered the year betting on two Fed rate cuts have been forced to cover short positions as those expectations have been pushed out.

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