U.S. and Iran Trade Heavy Strikes After Ceasefire Collapses; Energy Markets Surge

The 60-day ceasefire between the United States and Iran has collapsed, leading to a significant military escalation across the Middle East. President Trump declared the peace agreement "over" following Iranian attacks on tankers in the Strait of Hormuz, describing Iran's actions as "failed performance at an unacceptable level." In the last 24 hours, the U.S. launched Day 2 of a precision air campaign, striking approximately 80 military targets, including IRGC facilities and sites near the Bushehr nuclear plant. Iran responded with drone swarms and missile strikes against U.S. assets in Kuwait, Bahrain, Qatar, and Jordan, the latter of which intercepted eight missiles in its airspace. The conflict has immediately impacted global markets, with oil prices jumping nearly 6% and the International Energy Agency (IEA) warning of long-term volatility. Despite the heavy exchange of fire, which has resulted in 14 confirmed civilian deaths in Iran, both Washington and Tehran have maintained technical diplomatic channels to discuss nuclear issues. President Trump has downplayed the possibility of a prolonged war, suggesting that overwhelming force or a naval blockade could "finish the job" quickly. Regional allies are on high alert as the conflict expands beyond the Persian Gulf. Jordan’s active defense against Iranian missiles marks a new phase in the regional involvement, while Israel has signaled it is prepared to intervene if necessary. While Iran’s infrastructure has shown resilience—restoring damaged rail lines in under 15 hours—the risk of a wider multi-nation conflict remains at its highest point since the 2025 inauguration.