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U.S. Shoots Down Iranian Drones and Strikes Bandar Abbas as Oil Surges

The strikes raise the risk that Gulf crude flows will be further constrained, which could lift consumer prices and complicate Federal Reserve policy.

Overview

  • U.S. Central Command said American forces shot down four Iranian one-way attack drones and struck a ground control station near Bandar Abbas on Thursday, calling the actions measured and defensive.
  • Global markets moved quickly: Brent and WTI jumped more than 1 percent, Asian equity indexes slipped and U.S. futures lost ground as investors sought safer assets.
  • Crypto markets fell sharply with bitcoin below recent highs and U.S. spot-Bitcoin ETFs recording roughly $733 million in net outflows on Wednesday, driven by large liquidations of leveraged long positions.
  • Iranian state TV reported a draft deal to reopen the Strait of Hormuz but the White House called that report a complete fabrication and President Donald Trump said Iran would not receive sanctions relief.
  • The Strait of Hormuz handles about one-fifth of seaborne oil flows, so sustained or renewed disruptions raise shipping and insurance costs and could keep energy-driven inflation elevated, putting pressure on consumers and companies ahead of today’s U.S. PCE inflation release.