US Central Command launched strikes against Iran over the weekend in the third round of military action within a week, targeting Iran's ability to attack commercial vessels. The escalation followed Iranian forces hitting a Cyprus-flagged container ship, prompting Tehran to declare the Strait of Hormuz closed 'until further notice.' Brent crude surged 4.5% at the Sunday evening futures reopen while Bitcoin held near $63,000, as the 60-day ceasefire framework agreed in mid-June appeared effectively dead. The timing precedes the June consumer price index release scheduled for Tuesday at 8:30 a.m. Eastern time, with Fed Chair Kevin Warsh having described inflation as 'too high' earlier this month. The Strait of Hormuz serves as the chokepoint for roughly a fifth of the world's oil, with vessel-tracking data showing traffic well below normal levels.
US Central Command Launches Third Round of Iran Strikes
US Central Command said its forces began launching strikes against Iran over the weekend, the third round in a week, in a campaign officials said targets Iran's ability to attack commercial vessels. Iranian state media reported explosions along the country's southern coast, including the energy hubs of Bushehr and Asalouyeh and the port cities of Bandar Abbas and Bandar-e Dayyer. Tehran responded by declaring the Strait of Hormuz closed 'until further notice.' Vessel-tracking data showed traffic through the strait well below normal, though some movement continued during Asian trading hours.
Brent Crude Surges 4.5% as Iran Closes Strait of Hormuz
Oil markets moved first, with Brent crude surging 4.5% as futures reopened Sunday evening. When Iran first closed the strait in early March, Brent jumped past $100 a barrel for the first time in four years and later peaked near $120. Bitcoin was one of the few assets pricing the escalation in real time with stock, bond, and commodity markets shut for much of the weekend. Ether hovered near $1,800, up 1.7% over seven days, while XRP changed hands at $1.09 and Solana lagged at $76, down 5% for the week. Bitcoin tumbled below $62,000 last week when the US-Iran ceasefire first showed signs of unraveling, and an earlier bout of Middle East escalation liquidated $310 million in bullish crypto positions.
June CPI Release Scheduled for Tuesday Amid Oil Price Spike
The Bureau of Labor Statistics is set to release the June consumer price index on Tuesday at 8:30 a.m. Eastern time, followed by producer price index data on Wednesday. Fed Chair Kevin Warsh described inflation as still 'too high' earlier this month. The next signals to watch are whether tanker traffic through Hormuz resumes, how crude trades once global markets fully reopen, and whether Tuesday's CPI print shows inflation pressure.
FAQ
What did US Central Command do over the weekend?
US Central Command launched strikes against Iran over the weekend in the third round of military action within a week, targeting Iran's ability to attack commercial vessels according to officials.
Why did Iran close the Strait of Hormuz?
Tehran declared the Strait of Hormuz closed 'until further notice' after US forces began the third round of strikes against Iran, following Iranian forces hitting a Cyprus-flagged container ship.
When is the June CPI data scheduled for release?
The Bureau of Labor Statistics is set to release the June consumer price index on Tuesday at 8:30 a.m. Eastern time, followed by producer price index data on Wednesday.
