Oil prices jumped and US stocks fell after fighting erupted around the Persian Gulf on Monday, threatening a fragile ceasefire.
The US military said it fought off attacks from Iran as it facilitated the passage of two American-flagged ships through the Strait of Hormuz; US President Donald Trump said Washington sank seven Iranian boats.
The UAE was drawn into the hostilities, with Abu Dhabi reporting that an Iranian drone damaged a crucial oil hub.
Trump is growing impatient over stalled negotiations with Tehran.
“He doesn’t want to sit still,” a senior US official told Axios. “He wants pressure. He wants a deal.”
Some Republican senators are drafting an authorization of military force in case Trump reprises strikes, Semafor reported.
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