Iran launched a wave of assaults on Israel and Gulf countries on Wednesday, including one on a Saudi oilfield, as reports of a planned record release of oil reserves helped to calm markets and prices.
The conflict initiated by US-Israeli strikes on Iran has expanded throughout the region and beyond, resulting in rising energy prices, fuel shortages, and even school closures.
The G7 leaders will meet via video conference later Wednesday to address the war’s economic effects, notably the “energy situation,” according to the French presidency.
According to the Wall Street Journal, the International Energy Agency will decide on a proposal for the release of its largest-ever oil reserve.
The United States announced on Tuesday that it was targeting Iranian ships capable of mining the Strait of Hormuz, a critical oil corridor that has been essentially closed due to Iranian threats.
The US military broadcast video evidence of Iranian boats being blasted apart, claiming to have destroyed 16 minelayers along the strait, which transports one-fifth of the world’s oil.
“If for any reason mines were placed and they are not removed forthwith, the military consequences to Iran will be at a level never seen before,” President Donald Trump wrote on social media.
Trump faces rising electoral risks as the price of oil rises, months before the US elections. Crude prices jumped 5% late Tuesday before falling on Wednesday following the reserve release data.
Trump stated that the US military may follow tankers through the strait, but his government admitted that a statement by the energy secretary announcing the first such escort was incorrect.
Early Wednesday, the UK maritime agency reported that a container ship off the coast of the United Arab Emirates had been hit by an “unknown projectile,” highlighting the persistent hazards to regional shipping.
With an eye on shaky markets, Trump declared on Monday that the battle would be brief, despite the fact that his defense secretary, Pete Hegseth, stated that Tehran would face unprecedented fire on Tuesday.
