Oil prices surged Friday morning as Iran's military actions in the Strait of Hormuz intensified the ongoing conflict with the United States. International benchmark Brent crude futures with September delivery traded 0.6% higher at $89.53 per barrel. U.S. West Texas Intermediate futures for September delivery rose 0.5% to $84.04. This rise in commodity prices directly benefits capital holders amidst escalating imperialist tensions.
Iran's army announced Friday it had launched attacks on strategic U.S. assets and military bases in Kuwait and Bahrain. State media reported a drone strike targeted aircraft shelters, satellite communication systems, and equipment storage facilities at Kuwait's Ahmad al-Jaber Air Base. Iran's army also claimed Thursday to have attacked U.S. facilities at Sheikh Isa Air Base in Bahrain, hitting power generators, navigation systems, and support buildings. These actions followed a "heavy wave" of U.S. strikes against the Islamic Republic.
U.S. forces completed these strikes Wednesday, hitting dozens of Islamic Revolutionary Guard Corps targets nationwide. U.S. Central Command confirmed these targets included command centers, missile and drone facilities, coastal defenses, and maritime capabilities. The White House had declared 4 months ago, in April, that U.S. forces achieved the objectives of "Operation Epic Fury," claiming to have destroyed Iran's Navy and its ballistic missile and drone capabilities. Despite these claims, Iran has continued launching missiles and drones at U.S. bases and threatening commercial shipping.
President Donald Trump stated Friday that Americans should prepare for continued fighting with Iran. He predicted Tehran would eventually "peter out" as U.S. strikes steadily weaken its ability to retaliate. During a Cabinet meeting at Camp David, Maryland, Trump asserted, "I think we just want to win. We’re doing very well. We’re trying to be nice — as nice as you can be in a situation like that — but they’re being decimated." He further claimed, "They have no navy. They have no air force. They have no anti-aircraft. It doesn’t mean they don’t have any capability. They have some, but very little."
The State's Role in Protecting Capital
The renewed exchange of hostilities followed the collapse of an agreement Washington and Iran reached 2 months ago in June. This agreement was intended to end the fighting and restore commercial traffic through the strategically vital Strait of Hormuz. Hostilities resumed 1 month ago in July after Iran attacked vessels transiting the waterway. Trump's current pessimism marked a sharp shift from earlier in the week, when he spoke of "very friendly negotiations" and a "good chance" of an agreement. Iran denied direct talks but acknowledged mediators were relaying messages.
Oman, Qatar, Pakistan, and Egypt have attempted to revive the June agreement. These efforts have stalled over control of the critical waterway, sanctions relief, and Iran’s nuclear program. The new exchange of attacks further dims prospects for any deal. The U.S. state, through its military and diplomatic apparatus, consistently prioritizes control over global trade routes and the imposition of economic leverage.
Expanding Maritime Risk and Profit
Hamish Kinnear, a Middle East and North Africa analyst at risk intelligence company Verisk Maplecroft, noted a drone attack on shipping in Egypt. This attack signals Egypt's vulnerability to a widening conflict and indicates the Suez Canal, another critical choke point for global trade, is a potential target. Kinnear stated, “The expanding geographical range of drone and missile attacks on shipping this year – which encompass the Caspian Sea, Black Sea, Mediterranean Sea, Red Sea, Persian Gulf, and the Indian Ocean – amount to a new era of maritime risk.” He added that technological developments from the conflicts in Ukraine and the Middle East are extending this risk well beyond established hotspots. This increased risk translates into higher costs for shipping, ultimately borne by consumers, while potentially benefiting security and insurance industries.
Political Maneuvers and Economic Tools
Trump also indicated he was "losing faith" in reaching a deal with Iran, accusing Tehran of lying. He said, "All they do is make me angry." The remarks acknowledge that the 5-month conflict could drag on, despite earlier claims of decimating Iran's military. The U.S. approaches the November midterm elections 3 months from now, placing greater political pressure on Trump to explain the war's trajectory. Speaking Wednesday, Trump suggested Congress add tariffs on Iran to a sanctions bill against Russia and Tehran. These duties would have little direct effect on U.S. imports from Iran, but their inclusion could hinder the bill's passage, revealing the political maneuvering inherent in state-level economic warfare.