US Strikes Iran, Tehran Retaliates in Biggest Clash Since July

The United States carried out strikes against Iran, and Iranian forces responded by hitting US bases, in what wire reports called the biggest exchange between the two countries since July. Details on casualties, specific targets and the scale of damage were not included in the initial reporting. The timing lines up with a separate move in energy markets: Northwest European gasoline margins have climbed to levels near their 2022 highs, when the war in Ukraine first squeezed refined product supply. A fresh military escalation involving Iran, a major oil producer, raises the risk of further disruption to crude and refined product flows through the region. What remains unresolved is whether this exchange stays contained to a single round of strikes or escalates further. Markets will be watching for any Iranian moves against shipping lanes such as the Strait of Hormuz, through which a large share of global oil supply passes.