Second U.S. strikes on Iran jolt oil, stocks

U.S. forces carried out additional strikes on Iran for a second consecutive day on July 8, 2026, expanding a campaign that began after reported attacks on commercial ships in the Strait of Hormuz. U.S. Central Command said the latest operations hit over 80 targets inside Iran. The strikes focused on military sites, port facilities, and dozens of small boats, with the stated aim of degrading Iran’s ability to threaten freedom of navigation through the vital waterway.

Explosions were reported in Iranian coastal cities including Bandar Abbas and Bushehr after the strikes. The operations followed earlier attacks on Iranian assets linked to assaults on merchant vessels, underscoring a rapid escalation around the Strait of Hormuz. U.S. officials said the campaign sought to reduce Iran’s capability to continue attacking international commerce, particularly in a region that is critical for global oil shipments.

In response, Iran’s Islamic Revolutionary Guard Corps announced a joint drone and missile attack on U.S.-linked infrastructure and facilities in the Gulf. The Guards said they targeted 85 U.S. military sites in Bahrain and Kuwait. Identified targets included bases such as Camp Arifjan and Ali Al Salem Air Base in Kuwait, as well as facilities in Bahrain that host U.S. forces.

Iran’s barrage sent missiles and drones across the Persian Gulf, prompting air-raid sirens and air-defense activity in several states. Bahrain reported sirens sounding, while Kuwait’s military said it was intercepting incoming drones and missiles. Iranian state media described the attacks as retaliation for the U.S. strikes and the deaths of Iranian personnel reported after earlier raids.

The military escalation unfolded as President Donald Trump, attending a NATO summit, publicly declared that the interim ceasefire with Iran was "over." He said recent Iranian attacks on ships signaled the end of the arrangement and warned that the United States would "hit them hard" again. His comments aligned with the stepped-up U.S. operations and signaled a reduced emphasis on the interim deal that had been intended to support de-escalation.

The U.N. secretary general described the resumption of strikes as alarming and warned that the developments threatened ongoing diplomatic efforts. The collapse of the ceasefire framework, combined with open declarations of intent to continue strikes, raised concerns about further disruption to shipping and security in the region.

Energy markets reacted strongly to the exchange of strikes and heightened tensions around the Strait of Hormuz. Brent crude climbed about 5% on July 8, settling around $78 per barrel after the latest U.S. and Iranian actions. Intraday, Brent spiked to a daily high of $79.26, and some reports noted that it briefly topped $80 a barrel during the volatile session.

West Texas Intermediate, the main U.S. crude benchmark, rose about 4.4% to close near $73.52 per barrel. Traders focused on the risk that continued attacks, or further degradation of port and naval infrastructure, could disrupt flows through one of the world’s most important oil chokepoints. The moves extended gains from the previous day, reflecting a risk premium tied to the evolving conflict.

The escalation in U.S.-Iran hostilities and the surge in oil prices weighed on broader risk sentiment. U.S. equity markets fell, with contemporaneous reporting citing a drop of roughly 576 to 577 points in the Dow Jones Industrial Average (DJIA). The pullback reflected concerns about higher energy costs, geopolitical uncertainty, and potential implications for global growth.

Other risk assets showed signs of strain as investors reassessed exposure to the region and to sectors sensitive to energy prices. The combination of renewed military confrontation, a declared end to the ceasefire, and higher crude benchmarks added to volatility across commodities and equities, underscoring how developments in the Gulf were feeding directly into global financial markets.