Trump threatens Iran as oil jumps 7% and stocks sink

President Donald Trump threatened a forceful response after Iran fired missiles at U.S. forces in Jordan, ending a brief pause in fighting and sending oil prices sharply higher.

Trump vows retaliation after Iran missile attack

Iran’s Revolutionary Guards fired several ballistic missiles at a U.S. air base and military center in Jordan. U.S. officials said American forces intercepted the missiles, with no immediate reports of casualties.

Trump promised retaliation during comments at the White House.

“So it’s our turn,” Trump said. “We’re going to hit them very hard.”

Trump left open the possibility of a future agreement with Tehran but gave no details about the timing or scale of a U.S. response. He also said he had been briefed about a drone strike on a U.S.-owned gas storage tanker at Egypt’s Damietta port.

American and Saudi forces separately carried out joint strikes against Iran-backed groups in Iraq. The attacks killed at least 20 members of the Popular Mobilization Forces, according to the group.

Saudi Arabia’s direct involvement marks a further expansion of the conflict. Riyadh had previously tried to limit its military role while defending oil facilities and shipping routes from attacks linked to Tehran-backed groups.

Oil jumps as shipping risks return

Oil prices surged as traders reassessed the chances of prolonged disruption across the Strait of Hormuz and Bab el-Mandeb Strait.

Brent crude futures settled $6.65, or 7.91%, higher at $90.74 per barrel. U.S. West Texas Intermediate crude gained 6.56% to $84.46. The rally accelerated after Trump promised further action against Iran.

Traffic through the Strait of Hormuz remained limited, while Houthi militants continued to threaten vessels near the Bab el-Mandeb Strait. Only five commodity ships passed through Bab el-Mandeb on Wednesday, down from 39 on Tuesday.

Falling U.S. inventories added to the price pressure. Government data showed crude stockpiles declined by 7.2 million barrels to 404.5 million, their lowest level since 2018.

US Treasury targets Iran-linked crypto payments

Washington also expanded its financial campaign against Tehran. The U.S. Treasury sanctioned two companies accused of operating an Islamic Revolutionary Guard Corps-backed maritime insurance scheme.

Treasury officials said the firms forced commercial vessels to buy mandatory insurance before passing through the Strait of Hormuz. One of the sanctioned companies, HormuzSafe Marine Services Authority, allegedly accepted Bitcoin and other digital assets to bypass Western sanctions.

“The United States will not allow Iran to hold global commerce hostage or use international shipping to finance the IRGC’s terrorism, aggression, and repression,” Treasury Secretary Scott Bessent said.

The action also covered vessels accused of transporting Iranian crude and petrochemical products. Treasury has sanctioned more than 100 vessels linked to Iran’s shadow fleet since the start of 2026.

For U.S. crypto businesses, the action raises sanctions-compliance risks around wallets or payments tied to Iranian shipping operations.

Bitcoin recovers as US stocks close lower

Wall Street ended the session sharply lower as rising oil prices, renewed fighting and concerns about artificial intelligence spending weighed on risk appetite.

The Dow Jones Industrial Average fell 2.14%, while the S&P 500 lost 1.50%. The Nasdaq Composite dropped 1.68%, extending its decline from its June record.

Bitcoin initially fell below $64,000 following reports of the Iranian attack. It later recovered to about $64,435 after the Federal Reserve maintained its benchmark rate at 3.50%–3.75%. Three of the 12 policymakers voted for a quarter-point increase.

Markets will now focus on Trump’s response, access through the Strait of Hormuz, and whether higher energy prices push the Fed toward a September rate increase. Further military action could restore selling pressure across stocks and crypto while keeping oil prices elevated.