New US military strikes against Iranian assets signal sustained conflict risk, supporting oil prices and the dollar while pressuring equities.
The US conducted another wave of strikes against Iranian military targets on July 12, deploying fighter aircraft, naval vessels, and one-way attack drones for the first time. The operation targeted air defense systems, coastal radar sites, and missile capabilities, aiming to degrade Iran’s ability to threaten shipping in the Strait of Hormuz.
This follows earlier strikes over the weekend and marks an escalation in both scope and intensity. Markets had already priced in heightened Gulf conflict risk, with Brent and WTI crude maintaining elevated levels. Equity futures extended losses across major regions, while gold weakened against a stronger dollar.
The broadening campaign suggests near-term de-escalation is unlikely, reinforcing expectations of prolonged geopolitical tension. Traders are positioning for sustained pressure on risk assets, with oil and the dollar remaining supported.