Iran fires new missile wave at Gulf as oil and dollar both jump – escalation fueling gains
Monday's early rally in both oil and the US dollar reflects a classic risk-off reaction to a conflict that is now spreading across multiple Gulf states rather than staying contained to Iraq and Jordan. Crude, already up around 2% on the wider war speculation from an unnamed US official, is drawing further support from the new wave of Iranian missile and drone attacks on Bahrain, Jordan, Kuwait and Iraq, all of which raise the risk of disruption to regional energy infrastructure and shipping. The dollar's advance points to safe haven demand building alongside the oil bid, a pattern consistent with investors positioning for a longer, broader conflict rather than near term resolution. The deployment of AWACS surveillance aircraft from Prince Sultan Air Base, widely read as a precursor to renewed US strikes, suggests the retaliatory cycle is set to continue, keeping both markets biased toward further upside risk in the near term.
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Iran's attacks just widened to four countries at once, and oil and the dollar are both taking notice.
Summary:
- Air raid sirens sounded across Bahrain after Iran launched a new wave of ballistic missiles and one-way attack drones targeting sites in Bahrain, Jordan, Kuwait and Iraq
- Bahrain's Interior Ministry urged citizens and residents to remain calm and head to the nearest safe location
- Kuwait's military said its air defences were actively responding to hostile drone attacks it attributed to Iran
- An AWACS surveillance aircraft took off from Prince Sultan Air Base, seen as a signal that fresh US strikes are imminent
- Oil futures, already up around 2% at the start of the week on reports the US is planning for a wider war, extended gains following the new attacks
- The US dollar also rose in FX trade as the broadening conflict boosted safe haven demand
Iran launched a fresh wave of ballistic missiles and one-way attack drones on Monday targeting sites across Bahrain, Jordan, Kuwait and Iraq, triggering air raid sirens across Bahrain and prompting Kuwait's military to say its air defences were actively engaging hostile drones attributed to Iran. Bahrain's Interior Ministry urged citizens and residents to remain calm and move to the nearest safe location as the alerts sounded.
The expanded barrage marks a widening of the conflict beyond the Iraq and Jordan strikes that had already claimed American lives over the weekend, drawing in additional Gulf states and raising the prospect of a broader regional escalation. Adding to that picture, an AWACS surveillance aircraft was seen taking off from Prince Sultan Air Base, a move widely interpreted as preparation for another round of US retaliatory strikes.
The new attacks land just as oil markets were already digesting comments from an unnamed US official who said Washington is planning for a wider war, alongside reports that the Pentagon has been increasing the number of military aircraft in the region. Oil futures, which opened the week up roughly 2% on that speculation, extended their advance as the multi-country missile and drone assault unfolded, with traders pricing in a growing risk of disruption to Gulf energy infrastructure and shipping routes. The US dollar also strengthened in foreign exchange trade, a move consistent with rising safe haven demand as the conflict spreads.
The escalation follows a weekend in which at least three, and possibly four, US service members were killed since fighting resumed a week ago, including a service member killed in Iraq during a controlled detonation of unexploded ordnance from a downed Iranian drone, and unidentified remains found at the Jordan base hit by Iran on Friday. With Iran now striking four countries in a single wave and the US signalling readiness for further retaliation, both markets and regional governments are bracing for the conflict to widen further rather than de-escalate.
Oil:
This article was written by Eamonn Sheridan at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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