The US military today has begun "major combat operations" in Iran following co-ordinated Israeli strikes, marking the most significant escalation in years in the oil-rich Mideast Gulf region and sharply raising the risk of oil and gas supply disruptions.
"A short time ago, the United States military began major combat operations in Iran. Our objective is to defend the American people by eliminating imminent threats from the Iranian regime," President Donald Trump said.
Trump said the US would destroy Iran's missile inventory and industry and "annihilate their navy", reiterating that Tehran "will never have a nuclear weapon". He told members of Iran's Islamic Revolutionary Guard Corps (IRGC) and security forces to "lay down your weapons and have complete immunity or face certain death".
Videos circulated on social media indicating explosions in Tehran shortly before Trump's remarks. Israel earlier confirmed it had launched what it described as a "pre-emptive attack" against Iran, with defence minister Israel Katz declaring a national state of emergency and warning of expected retaliatory missile and drone strikes.
Israel closed its airspace to civilian traffic, suspended non-essential activities and instructed citizens to remain near shelters. Iran also closed its airspace.
The strikes today signal the collapse of renewed US-Iran nuclear negotiations held in Switzerland this week. Trump said the military operation began after Iran refused to renounce nuclear weapons ambitions. Tehran has repeatedly denied seeking atomic weapons and warned it would retaliate against US bases in the Mideast Gulf region if attacked. It launched missiles toward the US Al Udeid air base in Qatar during a 12-day conflict in June 2025, after US and Israeli strikes on Iranian nuclear facilities.
All Mideast Gulf oil producers host US forces, including Saudi Arabia, Qatar, the UAE, Bahrain and Kuwait.
Oil markets were already pricing in some geopolitical risk ahead of the escalation, with front-month Ice Brent crude trading near $73/bl on Friday, its highest since July.
An outright war between the US-Israel and Iran risks disruption to shipping lanes and flows through the strait of Hormuz, through which around 20pc of global oil supply and a significant share of LNG exports transit.
Opec+ ministers of the core group of eight are scheduled to meet on Sunday to review production policy for the month of April. Delegates had been weighing a modest supply increase from April, but the escalation introduces new uncertainty over supply balances and the group's strategy.
The US has significantly expanded its military presence in the Middle East in recent weeks, including air and naval assets, ahead of the breakdown in talks. Trump in his statement today acknowledged the risk of US casualties but said the operation was necessary to prevent Iran from acquiring nuclear weapons.
