Key facts
- US and Saudi Arabian forces carried out joint strikes in eastern Iraq targeting Iran-backed militia sites.
- Iran launched ballistic missiles at US forces in Jordan, which were intercepted.
- Oil prices rose over 5% to trade above $82 per barrel.
- US stock futures erased gains, and Bitcoin price slipped.
- The strikes were a response to drone attacks by Iran's IRGC-directed PMF militia.
Oil prices surged more than 5% on Wednesday, with Brent crude climbing to $85.50, following joint strikes by US and Saudi Arabian forces against Iran-aligned militant groups in Iraq. The US CENTCOM confirmed the precision strikes targeted Iran-backed militia weapons and logistics sites, marking the first public announcement of a joint US-Saudi operation. This action was a response to over 30 drone attacks by Iran's IRGC-directed PMF militia in Iraq against US forces and Saudi energy infrastructure in the preceding 72 hours.
Amid the escalating tensions, Iran claimed a surprise ballistic missile attack on US forces in the Middle East, specifically hitting the Muwaffaq Salti Air Base in Jordan. CENTCOM reported that all Iranian missiles were successfully intercepted. The conflict's intensification led to US stock futures erasing earlier gains and a slip in Bitcoin's price, which fell to near $63,620.
Traders are also cautious due to an upcoming US Federal Reserve rate decision, with recent dissents from Fed officials potentially signaling a September rate hike. The US dollar index (DXY) falling to 101.27 and the 10Y Treasury yield holding steady near 4.61% are providing some support to Bitcoin. Meanwhile, Iran rejected Oman's proposal for shared control of the Strait of Hormuz, demanding greater control.