U.S. Forces Destroy Iranian Boats as Iran Strikes UAE, Driving Oil Above $100

U.S. forces said they destroyed six Iranian fast boats and intercepted missiles and drones in the Strait of Hormuz on Monday, as Iran launched its first missile and drone strikes on the United Arab Emirates since an April ceasefire, injuring at least three people and igniting a fire at a key oil hub reuters +2. Oil prices jumped above $100 a barrel and global markets slipped as traders weighed the risk to one of the world’s most important energy chokepoints cnbc +1.

The Pentagon said the naval clash unfolded as “Project Freedom” — a major U.S. operation to escort stranded commercial ships — began moving traffic through the strait, while Iran rejected claims that any of its boats were sunk and condemned the U.S. mission as a ceasefire violation reuters +1. The UAE accused Tehran of “acts of piracy” for targeting an ADNOC oil tanker with drones and raining more than a dozen missiles and drones on its territory foxsanantonio +1.

How Project Freedom Turned the Strait Into a Live Battlefield

U.S. Central Command said Army AH-64 Apache and Navy MH-60 Seahawk helicopters destroyed six small Iranian boats that were “threatening commercial shipping,” as American warships and aircraft formed layered defenses around two U.S.-flagged cargo vessels transiting the Strait of Hormuz reuters +2. Admiral Brad Cooper said Iranian forces launched cruise missiles, drones and small boats at ships under U.S. protection and that “each and every one of those threats” was defeated by defensive fire reuters.

President Donald Trump, who has framed Project Freedom as a bid to “reopen” the strait and break what Washington calls an Iranian blockade, warned that if Iran targeted U.S. ships escorting commercial traffic, its forces would be “blown off the face of the Earth” cnbc. Iran’s military dismissed the U.S. account as “false,” insisting no Iranian craft were sunk and warning that foreign warships entering the strait without coordination “will be stopped with force” aa +1.

UAE Strikes and Market Jitters Over a Vital Oil Artery

The UAE Defense Ministry said Iran launched 12 ballistic missiles, three cruise missiles and four drones, with air defenses intercepting most of them but a drone-triggered fire damaging storage tanks at the Fujairah oil zone and injuring three workers, reported to be Indian nationals foxsanantonio +1. Separately, an ADNOC tanker was targeted by two drones in the Strait of Hormuz, while a South Korean-owned bulk carrier reported an explosion under investigation, adding to maritime risk foxsanantonio +1.

With tankers and cargo ships already stuck amid weeks of conflict, the new attacks drove U.S. benchmark WTI crude to about $104 a barrel and Brent to roughly $111, intraday gains of around 2–5%, while U.S. equity futures fell as investors priced in prolonged disruption around a passage that normally handles roughly a fifth of global oil flows cnbc +1. European leaders, including French President Emmanuel Macron, urged a negotiated, coordinated reopening of the waterway and declined to join an operation they described as militarily and legally “unclear” foxsanantonio.

The Bigger Picture

Monday’s exchanges underscored how quickly efforts to secure the Strait of Hormuz risk igniting broader clashes between U.S. and Iranian forces, even under a nominal ceasefire, while leaving Gulf states such as the UAE exposed to retaliatory strikes on critical energy infrastructure. With Tehran denying losses at sea and Washington vowing to keep escorting ships, the confrontation over who controls the world’s most sensitive maritime oil corridor appeared poised to intensify — and with oil already above $100, each new missile launch or naval skirmish could reverberate far beyond the Gulf.