War With Iran Widens Across Military Bases, Markets and Congress

By Stacy M. Brown Senior Global Correspondent

America’s war with Iran is rapidly expanding across multiple fronts, with military attacks, cyber operations, disruptions to global shipping, and sharp declines in financial markets converging into what analysts describe as a conflict with global economic and geopolitical consequences.

The widening crisis reportedly has unsettled investors and governments alike. U.S. stocks tumbled as the latest escalation in the Middle East intensified fears of prolonged instability in global energy markets and international trade. The Dow Jones Industrial Average dropped more than 600 points while the S&P 500 and Nasdaq also slid as investors rushed away from risk.

Energy markets reacted just as quickly. Oil prices surged above $100 per barrel as traders recalculated the risks tied to the Strait of Hormuz, the narrow shipping lane that carries roughly one fifth of the world’s oil supply each day.

“Global energy markets are going through an extremely critical period due to developments in the Middle East,” Fatih Birol, executive director of the International Energy Agency, said in remarks about the impact of the conflict on global energy supplies.

The conflict has already spread far beyond airstrikes and missile exchanges.

In Iraq, a British Special Forces base was targeted by a swarm of Iranian drones in one of the most dramatic attacks since the fighting began. American personnel suffered injuries in the strike while British forces avoided casualties. Western defense officials say investigators are examining whether the drones used in the assault contained Russian components.

Military officials say the drone strike reflects Iran’s reliance on asymmetric warfare tactics that include drones, proxy militias, and missile attacks designed to pressure U.S. forces and their allies across the region.

At sea, attacks on commercial shipping have turned the Persian Gulf into one of the most dangerous flashpoints of the war. Tankers have been struck in recent days, sending shockwaves through the global shipping industry and forcing insurers to raise risk premiums for vessels entering the region.

The Strait of Hormuz, which sits between Iran and the Arabian Peninsula, has become the focal point of those tensions. The waterway serves as one of the most important chokepoints in the global energy system.

Iran’s new Supreme Leader, Mojtaba Khamenei, signaled that Tehran intends to use the passage as leverage in the conflict.

“The Strait of Hormuz must stay closed,” Khamenei said in remarks broadcast on Iranian state television. “Iran will not refrain from avenging the blood of its martyrs.”

The statement came after U.S. and Israeli strikes killed his father, Ayatollah Ali Khamenei, and targeted Iranian military infrastructure in the early phase of the campaign.

Despite weeks of bombing, intelligence assessments indicate the Iranian government remains intact and capable of sustaining the war effort. Classified reports reviewed by officials conclude that the country’s clerical leadership structure still controls the government and security forces.

Confrontation is also occurring in cyberspace.

Multiple news outlets have reported that security experts have noted hackers are believed to be linked to Iranian groups have attempted cyberattacks against American companies and technology networks, including disruptions that affected major corporate systems. U.S. and Israeli cyber units are also conducting digital operations targeting Iranian networks as part of the broader campaign.

The ripple effects of the war are extending beyond the battlefield and into the global economy.

Energy analysts report that Russia has earned billions of dollars in additional fossil fuel revenue since the conflict began because rising oil prices have boosted its export income. Researchers estimate Moscow has generated nearly $7 billion in oil and gas revenue during the early weeks of the war.

The United States has attempted to calm markets by announcing the release of 172 million barrels of oil from the Strategic Petroleum Reserve, one of the largest emergency drawdowns in history.

Meanwhile, the war is triggering a growing political battle inside Washington.

More than 250 advocacy organizations have sent a letter to Congress urging lawmakers to reject additional funding for the conflict, arguing that expanding the war would deepen both the humanitarian crisis and the economic strain facing Americans at home.

The coalition, led by Public Citizen, Win Without War, MoveOn, and the American Civil Liberties Union, warned that the conflict could cost roughly $1 billion per day and divert resources from domestic priorities such as housing, health care, and food assistance.

“By launching a war against Iran, Trump has violated the Constitution, defied international law, flouted the will of the American people, and has put millions of lives across the region at risk,” the organizations wrote in a letter sent to Congress.

The Pentagon’s annual budget now exceeds $1 trillion after Congress approved an additional $150 billion in spending earlier this year. Advocacy groups say the administration is now seeking a supplemental package that could add another $50 billion to the military’s war funding.

Robert Weissman, co-president of Public Citizen, said additional funding would only prolong the conflict and divert resources from Americans facing economic pressure.

“More money for the Pentagon will serve to extend and escalate an illegal, unpopular, and devastating war,” Weissman said in a statement released with the coalition’s letter to Congress. “The money wasted on this war should instead be invested in meeting the economic squeeze felt by everyday Americans.”

Civil liberties advocates are also warning lawmakers that approving new funding could effectively authorize the continuation of the war without congressional approval.

“That’s exactly why it’s so crucial that the decision to go to war not rest on one person's impulses,” Christopher Anders, director of the ACLU’s Technology and Democracy Division, said in comments released by the coalition. “Congress must not fund the continuation of this unconstitutional war.”

The coalition urging Congress to reject additional funding includes major labor unions, civil rights organizations, environmental groups, and policy advocates such as Oxfam America, the Service Employees International Union, National Nurses United, the Council on American-Islamic Relations, Greenpeace, Common Cause, Indivisible, and the National Organization for Women.

Advocates say the financial costs of the conflict are already being felt both overseas and at home.

“People across the U.S. already hate Trump’s illegal war in Iran, and they’re not going to like it any better if Congress wastes $50 billion more of their money on it,” Shayna Lewis, deputy director of Win Without War, said in a statement responding to the administration’s request for additional war funding. “It’s outrageous that Trump is even asking for more money to spend on bombs when his spiraling war is killing civilians abroad and driving up prices for everyone at home, all with no end in sight. Congress should tell Trump clearly: not one more penny for this foolish, destructive war.”