President Donald Trump has warned Iran of a “forceful” US response after missiles were fired at American forces in Jordan, a flare-up that sent oil prices soaring by almost 8% and drove sharp losses on Wall Street.
Iran’s Revolutionary Guards launched several ballistic missiles at a US air base and military centre in Jordan, according to American officials. US forces intercepted the missiles and there were no immediate reports of casualties.
Speaking at the White House, Trump said the United States would retaliate, while declining to spell out when or how Washington might respond. He also signalled that future diplomacy with Tehran remained possible, but offered no specifics on any potential new agreement.
The president added that he had been briefed on a separate drone strike targeting a US-owned gas storage tanker at Egypt’s Damietta port.
Regional conflict widens
US and Saudi forces separately conducted joint strikes against Iran-backed groups in Iraq, in what appears to be a widening of the confrontation with Tehran’s regional allies.
The attacks killed at least 20 members of the Popular Mobilization Forces, according to that organisation. There was no immediate comment from Washington or Riyadh on casualty figures.
Saudi Arabia’s direct participation in the strikes marks a notable shift in its role in the conflict. Up to now, Riyadh had largely tried to contain its military involvement to defending its oil facilities and key shipping lanes from attacks linked to groups supported by Tehran.
Tensions at sea remained high. Traffic through the Strait of Hormuz was still restricted, while Houthi militants continued to threaten shipping near the Bab el-Mandeb Strait.
Only five commodity carriers passed through Bab el-Mandeb on Wednesday, compared with 39 the previous day, underlining traders’ concerns about the security of key maritime chokepoints for global energy supplies.
Oil spikes on supply fears
Oil prices jumped as traders rapidly repriced the risk of prolonged disruption in the Gulf and Red Sea.
Brent crude futures settled $6.65, or 7.91%, higher at $90.74 a barrel. US West Texas Intermediate crude gained 6.56% to close at $84.46.
The surge gathered pace after Trump’s remarks promising further action against Iran, with markets betting that any escalation could further restrict flows through the Strait of Hormuz, which handles a significant share of global oil exports.
Tightening US supply added to the upward pressure. Government figures showed American crude inventories fell by 7.2 million barrels to 404.5 million, their lowest level since 2018.
Washington tightens financial squeeze on Tehran
Alongside the military and market fallout, Washington expanded its sanctions effort aimed at Iran’s economic networks.
The US Treasury announced measures against two companies accused of running an Islamic Revolutionary Guard Corps-backed maritime insurance scheme.
Officials said the firms compelled commercial vessels to purchase mandatory insurance before transiting the Strait of Hormuz. One of the targeted entities, HormuzSafe Marine Services Authority, allegedly accepted Bitcoin and other digital assets to help evade Western sanctions.
The latest action also covered vessels suspected of transporting Iranian crude oil and petrochemical products. According to Treasury figures, more than 100 ships linked to Iran’s so‐called shadow fleet have been sanctioned since the start of 2026.
US regulators warned that the move increases sanctions‐compliance risks for American crypto businesses that may handle wallets or payments connected to Iranian shipping operations.
Wall Street sinks, crypto whipsaws
US share markets closed sharply lower as investors reacted to the renewed fighting, higher oil prices and unease over spending on artificial intelligence.
The Dow Jones Industrial Average fell 2.14%, the S&P 500 dropped 1.50% and the Nasdaq Composite slid 1.68%, extending its pullback from the record it set in June.
Bitcoin initially slipped below $64,000 after reports of the Iranian missile attack, before recovering to around $64,435. The rebound came after the Federal Reserve left its benchmark interest rate unchanged at 3.50%–3.75%, with three of the 12 policymakers voting for a quarter‐point increase.
Analysts said markets are now focused on three main issues: the scale and timing of Trump’s response, whether access through the Strait of Hormuz remains constrained, and if sustained energy-price rises might push the Fed towards a rate increase in September.
Any further military escalation, they warned, could reignite selling across equities and cryptocurrencies while keeping oil prices elevated.
