The oil market has all but discounted the prospect of a negotiated end to the war and “is bracing for a sharp escalation in military hostilities”, said Vandana Hari of oil-market provider Vanda Insights.
She made her comments despite Trump saying on Sunday he thought a deal was possible with Iran and that the men who have replaced Iranian leaders killed in the war seemed “reasonable”.
The Financial Times quoted Trump as saying in an interview that the US could seize Kharg Island, from where Iran exports much of its oil, but also that a ceasefire could come quickly. Taking control of Kharg would require ground troops.
The US Department of Defense is dispatching thousands of troops to the Middle East, giving Trump the option of launching a ground offensive, but he has not approved any of those plans, according to multiple news outlets.
ISRAELI STRIKES
Iran confirmed on Monday the death of Revolutionary Guards Navy Commander Alireza Tangsiri, the latest of its leaders killed, including Supreme Leader Ayatollah Ali Khamenei, who has been replaced by his son Mojtaba Khamenei.
But the killings and four weeks of US-Israeli bombardment have failed to silence Iran’s missile and drone batteries.
Kuwait said on Monday an Indian national was killed in an Iranian attack on a power and desalination plant in the country. Iran’s Revolutionary Guards later denied involvement.
An industrial building and a fuel storage tank near the main base of Israel’s navy in the northern city of Haifa were hit by debris from an intercepted missile, Israel’s fire service said.
Hezbollah later said it had targeted the naval base.
Since going to war again with Hezbollah, Israel has said it will seize a chunk of southern Lebanon to create a “buffer zone”, stoking Lebanese fears of Israeli military occupation that could deepen instability and cause further displacement.
US-based rights group HRANA says nearly 3,500 people have been killed in Iran, including 1,550 civilians, while authorities in Lebanon say nearly 1,240 people have been killed there. Over 400 Hezbollah fighters have been killed since Mar 2, sources told Reuters, but it is unclear if the official death toll includes those fighters.
At least 100 people have been killed in Iraq and 13 US service members have been killed.
