Trump vows Iran strikes as Brent tops $90 on Hormuz risk

Trump said the US "only wants to win" the Iran war and pledged to strike Tehran "very heavily" in the coming weeks, escalating a conflict that has already pushed Brent crude above $90 a barrel and disrupted the Strait of Hormuz, which carries a fifth of global oil and liquefied natural gas.

"We will hit them very heavily," Trump said, according to a White House statement. The threat follows a two-hour US military operation Thursday that struck dozens of Islamic Revolutionary Guard Corps targets in Iran, including military command centers and drone facilities, US Central Command said.

The strikes came after Iran confirmed it fired ballistic missiles at US troops in Jordan, all of which were intercepted, and after US and Saudi forces jointly attacked Iran-aligned groups in eastern Iraq, killing at least 20 members of the Popular Mobilisation Forces. Iran's state media reported three people killed in strikes on Qeshm Island. Brent crude futures rose more than 8 percent Wednesday to push above $90 a barrel, one of the sharpest spikes of the five-month war, before retreating slightly Thursday.

The escalation threatens to draw more Middle Eastern countries into the conflict. The Houthis in Yemen have declared a naval blockade on Saudi Arabia, and a drone hit a US-owned gas storage tanker at Egypt's Damietta port. Iran said it struck three tankers attempting to transit the Strait of Hormuz along an unauthorized route and that it controls the waterway. Oman has presented a plan backed by Gulf states to manage the strait, but Iran has rejected it.

Strikes Expand Beyond Iran's Borders

The joint US-Saudi strikes on Iran-aligned groups in eastern Iraq marked the first time Riyadh has publicly joined Washington in military action. Iraq's Popular Mobilisation Forces, powerful Iran-backed paramilitary groups incorporated into the Iraqi security forces, said at least 20 members were killed and 32 wounded. Iraqi men shouted "Death to America" as they carried the bodies of slain fighters. The Iraqi presidency denounced the strikes as "an unacceptable attack and a flagrant violation of Iraq's sovereignty."

Four Revolutionary Guards advisers were killed in the Iraq strikes, according to Iranian newspaper Hamshahri. Saudi Arabia's defense minister met Vice President JD Vance in Washington on Wednesday to urge the Trump administration not to escalate further by attacking Yemen's Houthis and carrying out more strikes against Iran-aligned militias in Iraq, two sources told Reuters. One source said such escalation would open the door to "major unknown risks."

Hormuz Blockade Tightens as Oil Spikes

The Strait of Hormuz has become the main hurdle in peace talks and a flashpoint for repeated escalations. Iran said it struck three tankers attempting to transit along an unauthorized route and that it controls the strait. The waterway, which carried a fifth of global oil and LNG before the war, now sits at the center of a confrontation that has roiled global energy and finance markets.

The war began in February when the US and Israel launched a bombing campaign in Iran that Trump said would last only a few weeks. A temporary ceasefire agreement in June collapsed after renewed fighting over the strait. The last time oil prices spiked this sharply was the initial February escalation, when Brent jumped more than 10 percent in a single week before stabilizing.

Oman has presented Iran with a plan backed by Gulf states to manage the strait, including collecting voluntary fees for its use, a Gulf source and a Western diplomat told Reuters. Iran has rejected the proposal. Trump said Washington is still seeking a peace deal, but his latest vow suggests the administration sees military pressure as the primary lever.

For markets, the risk premium embedded in crude prices is likely to persist as long as the strait remains contested. Energy-sector stocks could rally further while broader equity indices face selling pressure, and safe-haven flows into gold and US Treasuries are expected to continue. The next escalation point will be whether Iran responds to the latest US strikes with further missile attacks on US forces or additional tanker interdictions in the strait.

This article is for informational purposes only and does not constitute investment advice.