The U.S. And Iran Continue Trading Strikes. Oil Is Dropping Anyway

Oil is dropping on Thursday following several days of increases despite continued hostilities between the U.S. and Iran.

Brent crude, the international benchmark, dropped more than 1.50% and stood at $86.68 per barrel at 9:40 a.m. ET, while West Texas Intermediate, the U.S. benchmark, fell more than 1% and hovered above $83.60 per barrel at the same time.

Tehran has vowed to "punish" the U.S. after the country conducted what it described as a "heavy wave of strikes" against Iran.

Washington's were the first strikes since halting them on Friday, a decision that led to a days-long lull that ended on Tuesday after Iran launched a surprise missile barrage against a U.S. base in Jordan.

"CENTCOM assets struck dozens of Islamic Revolutionary Guard Corps (IRGC) targets in Iran, including military command centers, missile and drone facilities, coastal surveillance and defense sites, and maritime capabilities," the force said in a statement.

"The strikes aimed to further diminish threats posed by Iran and its proxies to American forces, commercial shipping, and neighboring Gulf countries," it added.

Trump said Tehran conceded that the most recent launch was a mistake and asked the U.S. not to retaliate, but he approved of the strikes anyway. The Iranian revolutionary guard said three members were killed in attacks in the northwestern province of Zanjan.

Jordan said it intercepted a new barrage from Iran, and Kuwait claimed that an attack hit a building belonging to a Chinese company, killing one worker.

The war's consequences appear to be expanding in the meantime. Egypt said on Thursday that a drone hit two ships at its Mediterranean port of Damietta the day before. The site is a liquefied natural gas hub. Cairo said an initial investigation determined that the drone caused a fire aboard the two ships, which are a regasification one and a storage vessel.

"The situation was immediately dealt with in accordance with the approved emergency and rapid response plans through the coordinated efforts of the competent authorities and the on-site firefighting and safety teams," the country's ministry of petroleum and mineral resources said. The attack was not claimed by any country so far.