WASHINGTON — The shooting war between the United States and Iran has resumed after the breakdown of a fragile ceasefire, with both countries exchanging attacks for a second consecutive night and threatening further escalation across the Middle East.
U.S. Central Command said American forces struck about 90 military targets across Iran overnight Wednesday, following attacks on dozens of targets the previous night.
The United States says the renewed military campaign began after three commercial tankers were attacked while travelling through the Strait of Hormuz.
It has been widely reported that Iran responded by launching missiles and drones at U.S. military installations and allied countries across the region, including Kuwait and Bahrain.
The renewed fighting has again placed the Strait of Hormuz at the centre of the conflict.
Shipping traffic through the narrow waterway has slowed dramatically as tanker operators assess the risk of further attacks.
Only two oil tankers were reported to have passed through the strait Thursday morning, while at least four oil and gas tankers turned around Wednesday rather than attempt the passage.
The Strait of Hormuz carried about one-fifth of the world’s traded oil and natural gas before the war began in February, making sustained disruption to shipping a significant threat to global energy supplies.
Hundreds of vessels carrying about 6,000 seafarers have been stranded in the Persian Gulf since the conflict began, according to the United Nations’ International Maritime Organization.
Some ships continue travelling through the strait without active transponders, making the extent of the slowdown difficult to determine.
The renewed fighting initially sent oil prices sharply higher.
Crude prices climbed more than four per cent Wednesday as markets reacted to the resumption of hostilities and growing concerns over tanker traffic through the Strait of Hormuz.
Oil prices were trading slightly lower Friday after the earlier gains as investors weighed the immediate risk to supplies against continued exports from the region.
Iran has accelerated oil exports from Kharg Island, its primary crude export terminal, during the recent ceasefire.
Shipping analysts estimate approximately 63 million barrels of Iranian crude are currently at sea, while Iran exported at least 10 million barrels of crude oil and fuel oil shortly before the latest escalation.
The United States has also revoked a temporary waiver allowing Iranian oil exports, exposing companies handling Iranian crude to potential U.S. sanctions.
President Donald Trump has warned the fighting could intensify if Iran continues attacking commercial shipping.
“This is in retribution for yesterday’s bombing of ships by Iran. If it happens again, it will get much worse!” Trump wrote on social media.
Trump has also said the latest fighting would not lead to a prolonged military campaign.
“Anything that happens is going to happen very fast,” Trump said.
The renewed hostilities have cast doubt on negotiations intended to produce a permanent agreement between Washington and Tehran.
Trump said Wednesday the interim ceasefire agreement was “over,” although negotiations could continue.
“They can talk, but I think they’re wasting their time,” Trump said.
The resumption of fighting has created renewed uncertainty for global energy markets, commercial shipping and negotiations aimed at ending the conflict.
The immediate direction of oil prices is expected to depend largely on whether tanker traffic through the Strait of Hormuz continues, further attacks damage energy infrastructure or the confrontation expands across the Middle East.
With both countries threatening retaliation and the ceasefire increasingly unlikely to survive, markets are again facing uncertainty over the security of one of the world’s most important energy corridors.
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