U.S. President Donald Trump makes a presentation in the Oval Office of the White House on Wednesday, July 29, 2026 in Washington, DC, USA.
Aaron Schwartz | Bloomberg | Getty Images
Iran’s Revolutionary Guards on Thursday warned of further escalation following a wave of retaliatory attacks against the country by the United States overnight.
“We will punish the aggressor today,” the Guards said Thursday, according to Iranian state media, adding that countries supporting the United States in the conflict “will also receive a harsh response.”
It also said it maintains “complete control” of the Strait of Hormuz and “strangers from thousands of kilometers away will not be allowed to interfere.”
US attacks Iran after attack on US military
This came after the US military completed a “huge wave” of Iranian strikes against Iran on Wednesday in retaliation for Iranian missile attacks on US forces in the region.
U.S. Central Command described the operation as a “forceful response” to Tuesday’s attempted attack by Iran on U.S. forces in the Middle East.
In the two-hour attack, the US struck dozens of defense targets across Iran, including military headquarters, missile and drone facilities, coastal surveillance and defense sites, and maritime capabilities, Centcom said.
The attack was aimed at further exacerbating the threat posed by Iran and its proxies to U.S. forces, commercial vessels, and neighboring Gulf states, the report said.
The new attack comes after Iranian forces targeted U.S. forces in the Gulf with multiple ballistic missiles in the United States late Tuesday, all of which were intercepted. The Jordanian military announced that its air defense forces intercepted five missiles fired from Iran.
Seth Krumrich, vice president of security firm Global Guardian and a retired U.S. Army colonel, said Tuesday’s surprise attack broke a pattern of Iranian responses to U.S. attacks and signaled Iran’s willingness to resume hostilities.
The move suggests that Iran “may be looking to respond more aggressively to future U.S. military actions and move away from diplomacy,” Krumlich said. Critical civilian infrastructure such as airports, power grids, desalination plants and Gulf energy facilities could be targeted again, he said.
UN Secretary-General António Guterres warned on Wednesday that a prolonged conflict risks engulfing the wider region.
The renewed strike marks the latest development in the conflict that has disrupted oil markets and disrupted shipping through the Strait of Hormuz since fighting broke out in late February. The United States halted a two-week bombardment of Iranian targets over the weekend as diplomats sought to give “some space” to peace talks.
President Trump sent a retaliatory cable hours earlier, warning that he would order a heavy attack on Iran. “We’re going to hit them hard. They’re going to get hit,” Trump told a Fox News reporter early Wednesday morning.
Brent crude oil futures rose 7.9% to close at $90.74 per barrel on Wednesday following President Trump’s comments, while U.S. West Texas Intermediate futures rose 6.6% to close at $84.46 per barrel. Crude oil fell slightly in Asian trade on Thursday.
Hostilities spread throughout the region. U.S. and Saudi forces on Tuesday launched a joint offensive against Iranian-allied militias in Iraq targeting oil facilities in Riyadh and Saudi Arabia’s eastern region. Yemen’s Houthis had claimed attacks on Saudi pipeline infrastructure that supplies the Red Sea export terminal in Yanbu.
The barrage came as Israeli Prime Minister Benjamin Netanyahu met with President Trump at the White House for a “productive” 90-minute conversation on the Iran war.
President Trump also asked lawmakers Wednesday to amend the Russia sanctions bill to give it the authority to impose tariffs on Iran. “I want Iran to be subject to tariffs, not just sanctions,” he told reporters in the Oval Office, according to The Hill newspaper. In 2025, US trade in goods with Iran was a meager $60 million.
“Cold water” for quick tension relief
Warren Patterson, head of product strategy at ING Bank, said the rising tensions were casting a “cold water on the idea of rapid de-escalation in the Persian Gulf” and dampening hopes for talks to resume.
Patterson said the targeting of Saudi oil infrastructure increased the risk of long-term supply disruptions, citing reports that Saudi Arabia’s 400,000 barrel-per-day Jizan oil refinery was shut down following a Houthi attack over the weekend.
Tanker traffic through the Strait of Hormuz has virtually stopped. Iran has rejected Oman’s proposal to equally split control of shipping along the vital highway, demanding an arrangement that would give Iran full control over incoming traffic and partial monitoring of outgoing traffic.
Patterson said the OPEC+ oil cartel is expected to announce a 188,000 barrel per day supply increase in September at its Aug. 2 meeting, completing an unwinding of its voluntary production cut of 1.65 million barrels per day. Once the dust settles, supply will be added, reinforcing the view that the market will remain well-supplied through 2027.
