Fresh Strikes as US Vows Retaliation for Houthi Attacks

The United States conducted a fresh wave of strikes against Iranian military targets, marking the thirteenth consecutive night of active combat in the region. President Donald Trump declared that frozen Iranian assets would be used to compensate for damages incurred from recent attacks on shipping.

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The United States has launched a fresh wave of strikes on Iranian military targets, marking the thirteenth night of active combat in the region as President Donald Trump vowed to use frozen Iranian assets to pay for any damage to shipping.

The latest offensive followed a new front opened by Iran-backed Houthis in Yemen, who attacked oil tankers in the Red Sea. While U.S. Central Command (CENTCOM) did not explicitly link the strikes to the Houthi blockade, Iranian state media reported U.S. missiles hit targets near Ahvaz, Omidiyeh, Bandar Abbas, and the island of Qeshm. CENTCOM stated the attacks aimed to hold Iran accountable and reduce threats posed by the Islamic Revolutionary Guard Corps to commercial shipping.

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CENTCOM said the attacks "aimed to hold Iran accountable and diminish threats from the Islamic Revolutionary Guard Corps to commercial shipping".

These developments sent oil prices soaring, with Brent crude surpassing $100 a barrel for the first time since May, a 7% increase. World leaders voiced significant concern over the escalating situation. United Nations Secretary-General Antonio Guterres warned that the situation was "getting out of control" and described a cycle where "one crisis feeds another. One escalation triggers the next."

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The situation is getting out of control. It is teetering on the edge of the unimaginable. One crisis feeds another. One escalation triggers the next.

European Central Bank President Christine Lagarde cautioned that the "energy shock could intensify further," potentially driving up inflation and fueling speculation about interest rate hikes. German Defence Minister Boris Pistorius highlighted the "dire consequences" for oil-importing economies, expressing skepticism about any imminent ceasefire or peace. Iran's military spokesperson stated that retaliatory attacks would continue as long as U.S. strikes persist, while Yemen's Houthis claimed responsibility for attacks on tankers and a blockade of Saudi ports. President Trump also announced the U.S. would utilize frozen Iranian assets to cover damages to ships and cargo in the region.

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the energy shock could intensify further and push up inflation, feeding speculation about a September eurozone interest rate hike.