U.S. Strikes Iranian Radar Sites, Iran Targets Kuwait Base

Washington and Tehran exchanged fresh strikes on military targets, sending oil prices higher and casting doubt on the near-term prospects for a peace agreement. The U.S. hit Iranian radar and drone installations. The Islamic Republic responded by targeting an American military base in Kuwait.

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Intermediate and Brent crude both climbed as hopes for a deal appeared to fade. Ships are now sailing dark through the Strait of Hormuz, which remains largely closed. Barclays said risks to its oil-price forecast were skewed higher.

Trump said the situation would resolve favorably.

“It will all work out well in the end.”

One foreign policy expert stated the central question had shifted from how the conflict ends to whether the resulting instability would become permanent. Israel expands offensive in Lebanon as U.S. and Iran continue talks. Trust between Washington and Tehran is at an all-time low, and Israel's widening offensive in Lebanon is only complicating matters.

Oil prices climbed in early Asian trading on Monday as Israeli troops moved further into Lebanon over the weekend and the U.S. hit targets in Iran, adding fuel to fears that the broader Middle East conflict is moving toward escalation rather than a peace deal.

At the time of writing, West Texas Intermediate crude was up 3.27% at $90.22 per barrel, while Brent crude had risen 3.36% to trade at $94.18 per barrel.