Pres. Trump is posting on TruthSocial:
“From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran. Thank you for your attention to this matter! President DONALD J. TRUMP”
Geopolitical tensions in the Middle East remain elevated. Earlier, Iran reiterated that it controls the Strait of Hormuz, while the Islamic Revolutionary Guard Corps (IRGC) warned that if U.S. attacks continue, it is prepared to launch a “regret-inducing operation,” further escalating the war of words. Shipping risks also increased after four additional oil tankers changed course in the Red Sea following renewed threats from Yemen’s Iran-backed Houthis, highlighting growing concerns over potential disruptions to global energy supplies as vessels continue to avoid the Bab el-Mandeb Strait.
Meanwhile, U.S. airstrikes have now continued for an 11th consecutive day. Yesterday, Defense Secretary Pete Hegseth appeared before Congress seeking additional funding for military operations and faced tough questioning over earlier assertions that Iran’s military capabilities had been “annihilated.” While the conflict has drawn comparisons to Russia’s invasion of Ukraine because of its uncertain duration, there is one key distinction: this war has so far been fought largely through air power, missiles, drones, and naval assets, without large-scale ground forces. Even so, modern warfare can have far-reaching economic consequences, particularly through its impact on global energy markets and shipping lanes. The AAA price of a gallon of gasoline in the US reached $4.06. The price at the start of the war was $2.98. At the start of President Trump’s second term on January 20, 2025, the AAA national average price for a gallon of regular gasoline was approximately $3.12.
Crude oil prices continue to reflect those risks. WTI crude is currently trading at $87.05, up $2.70 on the day after reaching an intraday high of $88.61. The next major upside technical target is the 100-day moving average at $89.48, a level the price has remained below since June 12. Earlier today, crude broke above the 50% retracement of the decline from the May 18 high, located at $86.13. That level now serves as an important support area. As long as prices remain above it, buyers retain the near-term technical advantage. A move back below $86.13 would shift focus toward last Friday’s swing high at $84.55, a level that acted as both resistance and support earlier this week before buyers regained control.
This article was written by Greg Michalowski at investinglive.com.