Oil rises as US-Iran conflict claims American troops
U.S. stock futures were mixed and crude climbed after American deaths raised pressure on Washington’s next move against Iran.
By Hana Yoshida · Markets Reporter
3 min read
Oil prices rose Sunday evening and U.S. stock futures were mixed after American service members were killed in incidents tied to Iran, according to Fortune. The casualties increased pressure on the White House as the U.S.-Iran conflict continued and shipping through key energy routes remained under strain.
Futures linked to the Dow Jones industrial average were down 61 points, or 0.12%, Fortune reported. S&P 500 futures slipped 0.05%, while Nasdaq futures gained 0.08%.
Crude markets moved higher. West Texas Intermediate futures rose 2.75% to $84.76 a barrel, and Brent crude advanced 3.2% to $90.92, according to Fortune. Gold fell 0.53% to $3,997 an ounce.
Fortune reported that two U.S. troops were killed in Jordan in an Iranian attack and that another service member was missing. A third American service member died in Iraq while trying to dispose of an Iranian drone that had been brought down, according to the report.
The deaths may test a threshold President Donald Trump had reportedly considered before agreeing to a memorandum of understanding last month, Fortune reported. That agreement followed an earlier ceasefire, which has since fallen apart.
The White House had not announced whether the conflict would return to a broader war footing, according to Fortune. The U.S. military was still carrying out daily strikes on Iran, including a recent round described by Fortune as retaliation for Americans killed in action.
Fortune reported that U.S. forces have not secured a shipping corridor through the Strait of Hormuz that avoids Iran’s approved route, despite more than a week of airstrikes. Iranian drones and missiles have kept commercial vessels away from the U.S.-backed path, according to the report.
MarineTraffic ship-tracking data cited by Fortune showed no crossings on the U.S.-supported route and no movements by a so-called shadow fleet, while Iran’s channel continued to show activity. Fortune reported that the situation gives Tehran leverage as global oil inventories decline.
Fortune also reported that Iran may be fielding more advanced weapons capable of evading U.S. air defenses, which could increase risks to American bases around the Persian Gulf. The outlet said Trump’s military choices have narrowed because U.S. operations have not removed Iran’s government or broken its control over Hormuz.
Retired Adm. James Stavridis, a former NATO Supreme Allied Commander, told CNN on Sunday that Trump faces three options, “and none of them are good.”
Stavridis said one option would be for the United States to walk away, which he described as a bad outcome for the U.S., the Gulf and global trade, though he said that course was unlikely. A second option would be a major expansion of military action, including the kind of heavy daily airstrikes seen earlier in the war and possibly ground troops, but Stavridis said he doubted that path because of the cost and reluctance to deploy forces on the ground.
The third option, which Stavridis described as the most likely, would keep the current approach: more bombing and stronger economic pressure while preserving room for negotiations.
Stavridis also warned on CNN that Iran or allied groups could threaten the Suez Canal, a route he said carries more ship traffic than the Strait of Hormuz. He said Iranian activity related to Jordan could be connected to those plans and pointed to the Houthis in Yemen as a possible means of pressure near the canal.
This story draws on original reporting from Fortune.