Iran clashes lift oil; Waymo nears $3B debt deal

US strikes and Iranian counterattacks around the Strait of Hormuz pushed energy prices higher and disrupted shipping through the waterway, while Alphabet’s Waymo is in late-stage talks to raise more than $3 billion of debt for its driverless expansion.

The US military carried out a second round of strikes in three days targeting radar systems and mine‑laying capabilities along Iran’s southern coast. Iran responded with drone and missile attacks on US bases across the Middle East. Iran’s Red Crescent reported at least four people killed and about 67 injured after Tehran said a US strike hit a wedding ceremony in the southern coastal city of Sirik. According to US Navy Captain Tim Hawkins, a Centcom spokesperson: “The US military never targets civilians.”

The renewed clashes narrowed the corridor for safe passage through the Strait of Hormuz. Brent crude traded near $95.53 a barrel and West Texas Intermediate around $90.92, with prices swinging during the session as markets reacted to reports of military activity and damage to vessels. Iran’s Islamic Revolutionary Guard Corps reported two oil tankers were disabled after hitting sea mines while attempting to transit the strait and warned that further US attacks would further restrict traffic.

Preliminary shipping data showed only four commodity vessels transited the waterway on Tuesday, below a recent 10‑day average of about 13 and well under pre‑conflict volumes. The Energy Information Administration reported US crude inventories fell by 4.5 million barrels last week, a larger decline than analysts expected.

Precious metals and Treasury markets also reacted. Spot gold rebounded from a near one‑month low as the US dollar and Treasury yields eased ahead of Friday’s US nonfarm payrolls report. Private payroll data for August came in weaker than forecast, and traders were pricing about a 64% chance of a rate increase at the Federal Reserve’s September meeting.

In separate corporate financing news, Waymo, Alphabet’s autonomous‑driving unit, is in the final stages of discussions to raise more than $3 billion in debt to help fund vehicle deployment and cover rising costs tied to artificial intelligence and operations. Lenders involved include Blackstone and Sixth Street Partners, with Pacific Investment Management Co. also participating. The proposed debt would be unrated and could carry a spread of roughly 500 basis points or more over benchmarks.

Waymo has relied largely on equity financing and raised about $16 billion earlier this year at a reported valuation of roughly $126 billion. The unit currently provides more than 500,000 paid trips a week across 14 US cities and aims to reach 1 million paid weekly rides across 20 cities this year. The company is preparing pilot services in international markets including London and Tokyo.

Before the recent escalation, the Strait of Hormuz carried about one‑fifth of global oil and liquefied natural gas consumption. Markets are monitoring developments in the region and upcoming US economic data for updates on energy flows and monetary policy.