U.S. Forces Intercept Iranian Missiles Targeting Troops in Kuwait

U.S. Central Command said American forces intercepted two Iranian ballistic missiles targeting U.S. troops stationed in Kuwait. The statement said no further details on casualties or damage were immediately available.

Iranian state media reported that Tehran would halt communications with Washington and completely block the Strait of Hormuz. The waterway carries roughly one-fifth of global oil supply. West Texas Intermediate crude surged 7 percent to about $94 a barrel on Monday, while Brent crude climbed 6 percent to roughly $97.

Iranian state media described the planned closure as a direct response to the latest exchange of strikes.

ExxonMobil Senior Vice President Neil Chapman spoke at the Bernstein Strategic Decisions Conference on Thursday. He said global oil inventories are approaching unheard of lows and that crude prices could soar as high as $160 a barrel if supplies continue to tighten.

Chapman said the market has avoided a more dramatic spike because countries and companies have been drawing down crude and fuel stockpiles while tapping strategic petroleum reserves.

"Saudi Arabia has maximized use of its East-West pipeline to move crude to the Red Sea and that previously unsold Iranian, Venezuelan and Russian oil has found its way onto the market." — Neil Chapman, Thursday (Bernstein conference remarks)

Chapman added that governments and companies have increasingly relied on stockpiles of crude oil, gasoline, diesel and jet fuel to bridge the supply gap. He said once minimum inventory levels and all-time low inventory levels are reached, there is only one way to go for prices.

The White House said consumers can expect lower prices once the conflict is over. Spokesman Taylor Rogers said President Trump and his energy team anticipated short-term market disruptions, communicated them openly to the American people, and implemented an aggressive plan to mitigate any impacts.