(Bloomberg) — The US-Israeli war on Iran reverberated across the region for a fourth day, with oil and gas prices surging and the world adjusting to a conflict that President Donald Trump says has no fixed timeline.
Iran sent a fresh wave of missiles at countries including Qatar, Bahrain and Oman that host US bases, with Doha saying targets weren’t limited to military interests and included the main airport.
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Israel said it struck the leadership compound in Tehran in an ongoing bombardment of the capital of the Islamic Republic and sent soldiers into southern Lebanon, where the Iran-aligned Hezbollah militia is based.
Two drones struck near the US embassy in Riyadh overnight, causing limited damage. An adviser to Iran’s Islamic Revolutionary Guard Corps commander told state TV that forces “will set fire to any ship attempting to pass through” the Strait of Hormuz — a vital shipping lane.
China, which buys most of Iran’s oil, urged “all sides” to ensure the safe passage of ships through the waterway, where traffic has effectively halted. The United Arab Emirates and Qatar are privately lobbying allies to help them persuade Trump to reach for an off-ramp that would keep the conflict short, according to people familiar with the matter.
Global benchmark Brent spiked to $85 a barrel for the first time since July 2024, after rising about 7% on Monday. European gas prices surged as much as 32% on Tuesday morning.
QatarEnergy halted the production of some chemicals and metal after Iranian attacks forced the shutdown of its major liquefied natural gas plant. Falling debris from an intercepted drone caused a major fire at the UAE oil-trading hub of Fujairah.
US Defense Secretary Pete Hegseth rejected the idea of an “endless” war with Iran on Monday. But Trump later said the campaign could go on “far longer” than an initial four or five week projection, adding that the US will do “whatever it takes.” Both refused to rule out putting American boots on the ground, though Trump told NewsNation he didn’t think that would be necessary.
Iran’s Red Crescent has reported 787 people killed in the Islamic Republic so far. Six US soldiers have died in the conflict and about a dozen people in Israel.
The US military said in a Tuesday post on X that it destroyed “Islamic Revolutionary Guard Corps command and control facilities, Iranian air defense capabilities, missile and drone launch sites, and military airfields.” Iran acknowledged overnight that its Natanz nuclear facilities had been attacked.
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