The United States and Israel are planning a bombing campaign against Iranian energy infrastructure, with strikes possible as early as this weekend. Proposed targets include power plants and oil refineries to degrade the Iranian military’s governing capacity. President Trump has not yet granted final authorization, though planning remains in advanced stages.
This escalation follows Iranian attacks on oil tankers in the Strait of Hormuz and President Trump’s vow to strike the regime. Iran’s military warned of a comprehensive response plan targeting U.S. and Israeli regional infrastructure. An unknown projectile struck a tanker off the coast of Oman on Saturday.
Oil markets face extreme uncertainty and a significant geopolitical risk premium while currently closed. The Strait of Hormuz handles 20% of the world’s oil supply. Crude prices recorded their largest monthly gain since March during July. Analysts expect a significant price spike when markets reopen.