U.S. Strikes Iran, Oil Near $72 After Ceasefire Claim

The U.S. military carried out retaliatory strikes against Iran on Friday. President Donald Trump said Tehran violated a ceasefire agreement by launching a drone attack near the Strait of Hormuz. The strikes targeted military sites, according to initial reports.

Oil prices rose on the news. Brent crude traded near $72 a barrel, up about 2% on the session. The waterway handles roughly a fifth of the world's oil supply.

The ceasefire agreement, brokered earlier this year, had reduced tensions in the region. Friday's strikes mark a sharp escalation. The White House said the action was a direct response to the drone attack, which Trump called a violation of the truce.

Iran denied responsibility for the drone attack, state media reported. The country's foreign ministry said it would retaliate against any further U.S. aggression. The situation remains fluid.

For traders, the key variable is whether the strikes lead to a broader conflict or remain a limited retaliation. The next scheduled update on U.S. crude inventories from the Energy Information Administration is due Wednesday.

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