President Donald Trump on Wednesday threatened to destroy Iranian bridges or power plants each time Iran attacks ships in the Strait of Hormuz, escalating tensions amid rising US-Iran hostilities. Trump's warning, posted on Truth Social, follows claims by Iran's Islamic Revolutionary Guard Corps that they targeted US assets in two Jordanian bases. The threat comes as crude oil prices surged to their highest levels since June 10, with US West Texas Intermediate futures up 3.2% to around $87.04 per barrel and Brent crude futures up 3.44% to around $94.14 per barrel, reflecting market reactions to Middle East disruptions and the suspension of Kazakhstan oil shipments to Russia's CPC terminal.
Trump Issues Threat Against Iranian Infrastructure
"From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy one bridge or power plant, including those located next to, or in, the Capital City of Tehran," Trump said in a post on Truth Social on Wednesday.
![President Donald Trump's post on Truth Social]()
Crude Oil Prices Reach Highest Levels Since June 10
US West Texas Intermediate futures expiring in September were up 3.2%, hovering around $87.04 per barrel, while Brent crude futures expiring in September were up 3.44%, hovering around $94.14 per barrel. The United States Oil Fund ETF (USO) was up nearly 3%, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) gained about 2%.
Analysts at ING Think said in a note on Wednesday that, given disruptions in the Middle East and developments in the Black Sea after Russia's CPC terminal stopped receiving oil from Kazakhstan, Brent crude may be undervalued at its current levels. "While the market has been relying on the US for additional supply since the war, room for further supply is limited as US refiners essentially operate at capacity," the firm said.
Rubio States US Seeks Diplomatic Settlement in Iran Conflict
Secretary of State Marco Rubio told reporters at the ASEAN Foreign Ministers' meeting in the Philippines on Wednesday that the US would "love" to reach a diplomatic settlement in the Iran war. "The U.S. would love to reach a diplomatic settlement, we'd love to reach an agreement if it were possible with Iran where they say we'll no longer sponsor terrorism and we will not pursue a nuclear weapon or the things that you need for a nuclear weapon," he said, while adding that Iran does not seem to be serious about a deal currently.
Rubio said that the US will continue to protect ships in the Strait of Hormuz, but added that other countries should also join in to aid it in its efforts. His comments come amid the US's 11th consecutive night of strikes against Iranian targets.
At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, fell 0.24%; the Invesco QQQ Trust ETF (QQQ) declined 0.69%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) edged up by 0.05%.
FAQ
What did Trump threaten to do in response to Iranian attacks on ships?
Trump stated on Wednesday that the US will bomb and destroy one Iranian bridge or power plant each time Iran shoots at a ship in the Strait of Hormuz, including infrastructure located in or near Tehran.
How much did crude oil prices increase following Trump's statement?
US West Texas Intermediate futures expiring in September rose 3.2% to around $87.04 per barrel, while Brent crude futures expiring in September increased 3.44% to around $94.14 per barrel, reaching their highest levels since June 10.
