This latest CENTCOM wave, following Sunday’s weekend strikes, and the 5pm ET round confirms the US campaign is broadening in scope and intensity rather than settling into a contained exchange, which should keep the fresh risk premium already built into Brent and WTI well supported. The first-time use of one-way attack aerial and sea drones alongside fighter aircraft and naval strikes signals an expanding US toolkit against Iranian coastal and shipping-threat assets, reinforcing the market’s read that near-term de-escalation is unlikely. Combined with equity futures already extending losses across the US, Europe and Japan and gold’s slide against a stronger dollar, the pattern points to markets pricing sustained Gulf conflict risk rather than a single flare-up, keeping pressure on risk assets while supporting oil and the dollar.
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The US keeps widening its toolkit against Iran, and markets are taking notice.
Summary:
- CENTCOM said it completed a new wave of offensive strikes against Iran on July 12, hitting dozens of targets at multiple locations with precision munitions aimed at degrading Iran’s ability to continue attacking shipping through the Strait of Hormuz.
- The strikes targeted Iranian military air defence systems, coastal radar sites, missile and drone capabilities, and small boats.
- CENTCOM used fighter aircraft, naval vessels, and one-way attack aerial and sea drones for the first time in the campaign.
- CENTCOM reiterated that the Strait of Hormuz is a vital corridor for global trade that Iran does not control, and said US forces remain positioned to keep the strait open to commercial shipping despite what it called continued unwarranted Iranian aggression, harassment, threats and arbitrary declarations.
- This latest wave follows a weekend of heavy exchanges in which Iran extended strikes to Qatar and the UAE, a further 5pm ET round of US strikes on Sunday, and reports of direct hits on the US Navy’s 5th Fleet headquarters in Bahrain.
- Oil and the dollar have risen sharply and gold has fallen while US, European and Japanese equity futures extended losses as the conflict widens.
US Central Command said it completed a new wave of offensive strikes against Iran on July 12, hitting dozens of targets across multiple locations with precision munitions in an effort to further degrade Tehran’s ability to attack international shipping moving through the Strait of Hormuz, according to a CENTCOM statement.
CENTCOM forces struck Iranian military air defence systems, coastal radar sites, and missile and drone capabilities, along with small boats used by Iranian forces. The operation marked the first use in this campaign of one-way attack aerial drones and one-way attack sea drones, deployed alongside US fighter aircraft and naval vessels, indicating an expansion of the tools Washington is now bringing to bear against Iranian coastal and maritime threat assets.
In its statement, CENTCOM reiterated that the Strait of Hormuz is a vital maritime corridor for global trade and stated plainly that Iran does not control it. US forces, the statement said, remain postured and prepared to ensure freedom of navigation stays available to commercial shipping despite what it described as Iran’s continued unwarranted aggression, harassment, threats and arbitrary declarations.
The strikes represent the latest escalation in a rapidly intensifying exchange between Washington and Tehran. Over the weekend, Iran extended its own strikes to Qatar and the UAE for the first time in months while reiterating that it had closed the strait, prompting an initial wave of over 300 US strikes on Iranian targets across three nights. A further CENTCOM strike wave followed at 5pm ET on Sunday, targeting missile and air defence systems near Sirik, Bandar Abbas, Qeshm and Jask, and there have since been reports of direct hits on the US Navy’s 5th Fleet headquarters in Bahrain, a strike against the regional hub for the US naval presence in the Gulf.
The cumulative effect of the widening campaign has been felt clearly across markets. Oil prices have jumped sharply since the weekend, gold has slid as the dollar strengthened on revived rate expectations, and equity futures in the US, Europe and Japan have extended losses as investors price in a conflict that shows little sign of settling into a contained exchange. With CENTCOM now deploying new drone capabilities and continuing to frame its actions as necessary to hold Iranian forces accountable, the trajectory of the campaign suggests further strikes, and further market volatility, are likely in the days ahead.
This article was written by fl6553e4b45d84486a91658a8b3f02bf22 at investinglive.com.
