Iran’s relentless attacks on transport and energy infrastructure in the Persian Gulf sent oil back above US$100 a barrel on Thursday, as US and Israeli strikes on the Islamic Republic showed no sign of an end to the war.
Iran is trying to inflict enough economic pain on the world to pressure the United States and Israel to stop the bombing, which started the war on February 28. Iran’s president has said that its attacks will continue until Iran receives security guarantees from another attack, indicating that even an end to the war or a US declaration of victory may not stop the war.
US President Donald Trump has promised to “finish the job,” even though he says Iran is “almost destroyed.”
Iran-backed Hezbollah fighters then launched 200 rockets from Lebanon north of Israel as sirens rang out and loud noises of Iranian missile interceptions were heard elsewhere. Israel also launched attacks in Tehran and Lebanon, where 11 people were killed.
The UN refugee agency said about 3.2 million people in Iran have been displaced by the ongoing war. It said most have fled to Tehran and other major cities in the north of the country or rural areas. It says at least 759,000 people have left their homes in Lebanon.
Iranian officials are dismissive of any idea of a retreat
Iranian President Masoud Pezeshkian suggested online on Thursday that for the war to end, the world would need to recognize Iran’s “legitimate rights”, pay reparations and provide assurances about future attacks.
In addition to attacking energy infrastructure around the world, Iran has control over the Strait of Hormuz, the waterway from the Persian Gulf to the Indian Ocean through which a fifth of the world’s oil is transported.
Amidst speculation that the US may target Kharg Island in the Persian Gulf, which is Iran’s main oil base, Iranian parliament speaker Mohammad Bagher Qalibaf threatened in a diplomatic note that any attempt to seize the Iranian islands “will make the Persian Gulf run with the blood of invaders.”
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With traffic at a standstill, the price of Brent crude oil, the international standard, rose another nine percent to more than $100 a barrel, up 38 percent from what it was worth when the war began. Prices have fluctuated back and forth in recent days, at one point reaching around $120 a barrel.
Iran and Hezbollah launched several attacks on Israel
There were many casualties in Israel as Hezbollah launched about 200 rockets in the north of the country and deep into Israel, according to the Israeli military.
“The noise was strange, really scary,” said Naama Porat, a resident of the village of Klil, about 15 kilometers (9 miles) from the Lebanese border. As the sound of explosions and blockades was heard, she rushed with her son to the shelter where they slept.
No serious injuries were reported, but the scale of the fire shocked residents of the north, who have been repeatedly told by their leaders that Hezbollah faced disaster in 2024 during its last war with Israel.
“They have a lot of weapons and it doesn’t stop. We don’t know how much and what to expect,” said Porat.
Israeli Defense Minister Israel Katz warned Lebanon that if its government does not stop Hezbollah from attacking, Israel will “take over the territory and do it ourselves.”
More than 20 people died in the strikes in Lebanon and Iran
Meanwhile, Israel crashed a car in the coastal area of the capital of Lebanon where a number of people who left their homes were taking shelter, killing eight and injuring 31, said the Ministry of Health in Lebanon. The Israeli military said it was “not aware” of the strike in the area.
Israel’s military said it struck a nuclear facility in Iran days ago. Israel destroyed the “Taleghan 2” site in an airstrike in October 2024. Earlier this year satellite images raised concerns that Iran was working to restore the facility.
The US and Israel say destroying any remnants of Iran’s nuclear program is one of the main goals of the war. They have long suspected that Iran is seeking nuclear weapons, while the Islamic Republic says its nuclear program is peaceful.
In Tehran, security checkpoints were attacked for the first time on Wednesday night, Fars news agency reported. At least 10 people have died in these alleged drone attacks.
Israel and the US military did not immediately respond to requests for comment on whether they were behind the attack.
Iran fires at Gulf Arab states and crashes a ship in the Persian Gulf
Iran’s recent attacks on its Gulf neighbors are in violation of a UN Security Council resolution approved on Wednesday.
Early on Thursday, a container ship was hit by a projectile off the coast of Dubai, causing a small fire, according to the United Kingdom Maritime Trade Operations Center. It said the workers are safe.
Iran’s attack sparked a massive fire on Muharraq Island, which is home to Bahrain’s international airport. Kuwaiti authorities said an Iranian jet crashed into an apartment building, injuring two people, while a drone attack at Kuwait International Airport caused damage but no one was injured.
The UAE said it activated air defenses twice to protect the futuristic city of Dubai from attack, and firefighters put out a fire that broke out in the tower after the drone hit.
Saudi Arabia, for its part, said it shot down a drone targeting an official compound in its capital, Riyadh, and other drones in the east, including at least one that was trying to target its Shaybah oil field.
Following an attack on the Iraqi port of Basra on Wednesday that killed at least one person, officials said Thursday that all oil fields in the country have been suspended.
In the UAE, Citibank said it would close all but one of its branches because of an Iranian threat – which has yet to be realized – to target financial institutions in the region.
