Fresh tensions between Washington and Tehran rattled global markets within hours. As President Donald Trump promised a forceful response to Iran, oil prices jumped sharply, hinting that the conflict could escalate again.
Oil prices surge as Donald Trump gives fresh warning to Iran
President Donald Trump delivered his strongest warning yet to Iran on Wednesday after U.S. officials accused Tehran of launching ballistic missiles at American military installations in the Middle East.
Speaking to Fox News, Trump vowed that the United States would respond decisively, saying Iran would “get a beating” while making clear that military retaliation remained on the table following what he described as a surprise attack.
Trump’s comments followed a statement from U.S. Central Command, which said Iran’s Islamic Revolutionary Guard Corps fired ballistic missiles at American bases in the region. However, air defenses intercepted the incoming missiles before they reached their targets.
The president also revealed that U.S. forces had only minutes to react. Despite the escalating rhetoric, Trump said diplomatic talks with Tehran would continue, adding that the U.S. would still “let them keep talking” (via Financial Times).
Financial markets reacted almost immediately. Brent crude climbed nearly 7% during the day, rising to just under $90 per barrel as traders weighed the possibility of a broader regional conflict. The renewed fighting ended several days of relative calm that had eased pressure on energy markets, reviving concerns that disruptions across the Middle East could threaten global oil supplies.
The latest missile exchange came one day after the United States and Saudi Arabia carried out coordinated strikes against Iran-sponsored militant factions in Iraq. CENTCOM said the targeted groups had planned attacks on U.S. military positions and Saudi energy infrastructure under IRGC direction. Iraqi militia groups later claimed at least 20 of their fighters died in the strikes.
Meanwhile, the IRGC defended its missile attack, saying its campaign of “resistance will continue” as long as it believes U.S. military actions threaten Iranian interests.
