Trump Says US May Launch "Another Operation" Against Iran as Oil Prices Climb
Key Takeaways
- •Trump said at a rally that the United States may carry out another operation against Iran and indicated Cuba would also be addressed on the way back.
- •The IRGC Navy stated on Friday that two supertankers struck naval mines while attempting to cross an unauthorized southern route through the Strait of Hormuz, triggering explosions and fires.
- •The Strait of Hormuz, located between Iran and Oman, is the world's most important oil chokepoint, with roughly a fifth of global oil supply passing through it.
- •WTI crude rose $4.21 to $103.74 and Brent reached $117.27, its highest level since May, as markets fully priced in the escalation.
- •The report suggested the operation could serve as a face-saving move for Trump, potentially concluding with a deal to reopen the strait and lower oil prices by Monday.
Trump said at a rally that the United States may carry out "another operation" against Iran, telling attendees, "We may do another little Epic Fury," and adding, "We'll take care of Cuba on our way back from Iran."
Oil has been strongly bid over the past two days, with markets betting that Trump will act in the short term.
Separately, the IRGC Navy said in a statement on Friday that two supertankers struck naval mines while attempting to cross what it described as an unauthorized southern route through the Strait of Hormuz, causing explosions and fires. The strait, which lies between Iran and Oman, is the world's most important oil chokepoint, with roughly a fifth of global oil supply passing through it. The report advised treating the claim with caution, but noted that the current standoff is a paradigm that cannot last.
Trump said recently that there would be no attacks before the midterms, the US congressional elections held midway through a presidential term, though the report expressed skepticism about the credibility of that pledge. The reference to a "little Epic Fury" matches what has been rumored, including strikes on missile sites, Pickaxe Mountain, and infrastructure, and there are even signs the operation has been telegraphed.
In the report's assessment, the move could amount to a face-saving operation for Trump, who could declare victory afterward, with a deal potentially emerging to reopen the Strait of Hormuz. The outcome ultimately depends on what Iran wants next: it has hinted at massive retaliation, but is seen as just as prone to exaggeration as Trump. Optimism rests on signs that Trump has already signaled the operation to everyone, including the Russians, who were said to have evacuated on Friday — meaning the episode could be wrapped up by Monday and oil prices could head back lower.
For now, markets are entirely pricing in the escalation, with WTI, the US crude benchmark, up $4.21 to $103.74 and Brent, the international benchmark, at its highest level since May at $117.27.
Source: ForexLive — Trump: We may do another operation against Iran
