Iran widens attacks as truce unravels, oil jumps 11% this week
The collapse of a U.S.-Iran truce and the widening of military strikes across the Gulf have pushed crude prices up more than 11 percent this week, threatening to revive inflationary pressures across Europe.
Iran has widened its military response to the United States, targeting American forces in Syria and Bahrain as a fragile month-old truce continued to unravel. The escalation followed a sixth consecutive night of U.S. airstrikes on Iranian soil. The interim agreement, signed last month, had been designed specifically to halt the fighting and reopen the strategically vital Strait of Hormuz.
The geographic spread of the overnight violence underscored the risk of a broader regional war. Bahrain's Defence Force said it intercepted multiple aerial attacks aimed at the Sakhir airbase. Kuwait, Jordan, and Qatar also reported intercepting incoming Iranian missiles and drones. Iran's Revolutionary Guards separately claimed an attack on a U.S. command center in Syria's al-Tanf region, though the U.S. military withdrew from that base in February.
U.S. Central Command said its latest strikes hit dozens of Iranian military targets, including air defences and maritime infrastructure. More than 50,000 American service members are currently operating across the Middle East. U.S. President Donald Trump said Thursday: "We are likewise winning big in Iran, and you will see the fruits of that labor very, very shortly." He has threatened to strike Iran's bridges and power plants next week if negotiations do not resume.
Iranian state media reported that U.S. strikes overnight killed eight people and wounded 20, alleging that civilian infrastructure like bridges, a train station, and an airport were hit. Those claims could not be independently verified. Syria's government has previously stated it would remain outside the conflict unless directly attacked.
For European economies already navigating fragile growth, the primary concern is energy security. The collapse of the Hormuz truce directly threatens a maritime chokepoint critical to global oil supplies. The prospect of sustained regional disruption has triggered a sharp repricing in crude markets.
International benchmark Brent crude rose 0.5% on Friday morning to $84.67 per barrel, while U.S. West Texas Intermediate gained 0.9% to $79.66. Both contracts are now up more than 11% for the week, firmly on track for their best weekly performance since late April. A sustained surge of this magnitude translates quickly into higher fuel costs and renewed inflationary pressure for European households and businesses.
