Iran's military says it destroyed an advanced U.S. drone over the Strait of Hormuz, President Trump has floated taking control of Iran's oil, and a planned meeting on the strait between Iran and Gulf states has been postponed. Oil prices, meanwhile, climbed back above $100 a barrel.
Drone destroyed over Hormuz
Iran's Islamic Revolutionary Guard Corps said Monday its new advanced aerospace defence system intercepted and destroyed an advanced American MQ-1 drone over the Strait of Hormuz, without disclosing the aircraft's mission. General Atomics manufactures the MQ-1, historically flown primarily by the U.S. Air Force and the CIA.
The strike follows a series of Iranian operations against U.S. unmanned naval systems in the Gulf, as the war between Tehran and Washington, now in its seventh month, shows no sign of de-escalation.
Trump floats taking Iran's oil
President Donald Trump said Sunday the U.S. could continue its campaign against Iran and take control of its oil, comparing the scenario to the deal Washington struck with Venezuela earlier this year. According to CNBC: "unless we decide to stay and keep the oil like Venezuela", Trump said at the Irish Open golf championship in Ireland.
Under the August agreement, Venezuela ceded majority U.S. control of more than 65 billion barrels of oil reserves — more than double America's own — in exchange for $209 billion to its state treasury. Trump said revenue from the arrangement has paid for the war many times. He added that he expects the Iran conflict to end this year, possibly after the November midterm elections, predicting gasoline prices would fall sharply once it does.
Hormuz talks postponed
A meeting in Oman between Gulf countries and Iran on the Strait of Hormuz was postponed, Omani Foreign Minister Badr Albusaidi said on X Sunday, citing the need for consensus. Officials from Iran and Gulf nations had been expected to meet Monday to sign an agreement establishing an Iran-Oman shipping route through the strait, though no direct U.S.-Iran talks were ongoing.
The waterway has been under an Iranian and later U.S. naval blockade since the war began in February, and a June accord between Washington and Tehran faltered over disagreements about the strait. The group has also gained leverage over a second critical waterway, the Bab el-Mandeb, following a recent offensive by Yemen's Houthi rebels.
Oil surges past $100
Oil prices climbed back above $100 a barrel for the first time since May and rose further Monday after Saudi Arabia closed a key East-West pipeline following damage from Iraqi drones. WTI futures rose 2.3% to $102.39 a barrel, while Brent crude gained 2.4% to $107.11 a barrel.
Ships deemed non-compliant continue to face Iranian strikes, while the U.S. periodically bombs Iran's coastline to contest control of the strait.
Source: CNBC
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