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Trump says ceasefire still holds after fighting between the US and Iran flares
Iran said it struck U.S. vessels after accusing Washington of violating the ceasefire, while oil prices rose above $100 a barrel, Reuters reported.
On Friday, United States and Iranian forces clashed in the Gulf as three United States Navy destroyers transited the Strait of Hormuz. President Donald Trump said the destroyers suffered no damage and the month-old ceasefire remains in effect.
Iran accused the United States of violating the ceasefire by targeting Iranian vessels and civilian areas on Qeshm Island. The military responded by attacking United States military vessels east of the Strait and south of Chabahar.
Brent crude jumped above $100 a barrel on Friday, while average United States gasoline prices have climbed more than 40% to more than $4 a gallon. Drone attacks have taken more than 2.3 million barrels of refining capacity offline since the war began.
A spokesperson for Khatam Anbiya Central Headquarters claimed Iranian strikes inflicted "significant damage," but Central Command denied the claim, stating none of its assets were hit. Trump insisted negotiations with Tehran remain on track despite the exchange.
Tehran is reviewing a United States proposal to formally end the conflict, though officials have not yet reached a decision. "Despite ongoing hostilities and still-elevated oil prices, markets are pricing a limited duration," said Marija Veitmane, head of equity research at State Street Markets.