U.S. Strikes Iran's Qeshm Island as Oil Jumps 2% After Gulf Missile Fire
Updated
Updated · Reuters · Jun 3
U.S. Strikes Iran's Qeshm Island as Oil Jumps 2% After Gulf Missile Fire
3 articles · Updated · Reuters · Jun 3
U.S. crude rose about 2% to $95.40 a barrel after CENTCOM said Iran fired missiles at Kuwait and Bahrain, prompting U.S. retaliatory strikes on Qeshm Island in the Strait of Hormuz.
Stalled peace talks drove the flare-up: Washington and Tehran said last week they had a tentative deal to halt the war, but no agreement has been signed and traders are unwinding bets on a breakthrough.
Markets split on the shock. Bitcoin slid nearly 10% in three sessions to $66,123, while S&P 500 futures dipped and AI-linked shares kept climbing, with Marvell surging 32.5% overnight.
The dollar touched 160 yen before easing as intervention fears resurfaced, while stronger U.S. data and war-driven inflation risks pushed markets to price about 18 basis points of Fed hikes this year.
With oil prices soaring, how will the world's economies handle a prolonged closure of the Strait of Hormuz?
With strikes ongoing despite a ceasefire, can diplomacy truly succeed in the Persian Gulf?
As cheap drones challenge expensive defenses, is the era of the superpower military over?
June 2026 US-Iran Escalation: Qeshm Island Strikes, Strait of Hormuz Crisis, and Global Economic Fallout
Overview
The US-Israeli war against Iran began on February 28, leading Tehran to close the Strait of Hormuz and disrupt global shipping. Although a ceasefire was announced on April 7 and took effect on April 8, tensions remained high. On June 2, the United States launched new strikes in southern Iran, including an attack on an Iranian tanker. Iran saw these actions as direct aggression and quickly retaliated, escalating the conflict further. This cycle of strikes and counterstrikes highlights the fragile ceasefire and the ongoing risk of a wider regional crisis.