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Trump Vows Hard Response to Iran After Oil Surge

Financial Times Markets •
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Donald Trump vowed further attacks on Iran after Tehran fired missiles at American assets in Jordan, ending over a month of relative calm. The exchange began when the US struck two Iranian rocket launchers on Larak Island in the Strait of Hormuz, believing the Islamic Revolutionary Guard Corps planned to deploy sea mines. Iran retaliated with a missile barrage targeting Jordan, where US troops are stationed.

Trump stated one missile breached US defenses while others were intercepted. The overnight clashes pushed oil prices above $90 a barrel, rising more than 3 percent. Treasury Secretary Scott Bessent expanded secondary sanctions on Tehran, warning measures could "blow up" the global financial system.

Vice President JD Vance said Trump posted an AI-generated video of strikes on Kharg Island to send a message to Iranians regarding commercial shipping. An Iranian official told Reuters the regime would respond "dozens of times greater" to every US attack. The six-month conflict has become a stalemate, with talks collapsed and Trump struggling to end the violence ahead of November midterms.

Tehran claims no target in the region is beyond its reach as the risk of full-blown war persists.