Iran Drone Strikes Boost Oil Prices; Biden Vows Retaliation
Missile strikes by Iran-backed militants in Jordan, killing U.S. troops, led to an early rise in oil prices. Brent traded at $84.03 per barrel, up 0.57%, and U.S. WTI futures increased by 0.6% to $78.48 per barrel. The White House reported three U.S. service members killed and several injured in an unmanned aerial drone attack near the Syria border on Sunday, marking the first American fatalities from enemy attacks since the start of Israel's war with Hamas on Oct. 7.
U.S. President Joe Biden, in response to the drone attack on U.S. troops, stated the assault was carried out by radical Iran-backed militant groups in Syria and Iraq. He affirmed the commitment to holding those responsible accountable at a time and manner of their choosing. The Islamic Resistance in Iraq claimed responsibility for the drone attack, also targeting two other bases, expressing solidarity with the Palestinian people in Gaza.
The incident marks an escalation in the Middle East, following Israel's declaration of war on Hamas after a terror attack on Oct. 7. The conflict has resulted in over 26,000 casualties in the Gaza Strip. Additionally, recent attacks by Yemen-based Houthi rebels on an oil tanker in the Red Sea heightened tensions, with a Trafigura-operated vessel catching fire after being struck by a missile in the Gulf of Aden.