WASHINGTON — The U.S. military struck Iran during New York trading hours, breaking with its recent practice. President Donald Trump warned that Iran would be "wiped out as a country" if it retaliated, while Tehran vowed to launch a "decisive operation" targeting U.S. military bases across the Middle East. As tensions between Washington and Tehran escalated again, Brent crude futures climbed above $95 a barrel and the U.S. 10-year Treasury yield broke through 4.8%.
U.S. Central Command said on X, formerly Twitter, that it began strikes on targets belonging to Iran's Islamic Revolutionary Guard Corps (IRGC) at noon U.S. Eastern time on the 1st. The command said the action followed recent Iranian attacks on commercial vessels in the Strait of Hormuz and on U.S. service members deployed in the region.
The strikes came two days after U.S. forces hit two rocket launchers used to lay mines on Larak Island on the 30th of last month. Iran responded at the time by firing missiles at technical infrastructure and maintenance facilities at two bases housing U.S. troops in Jordan. Until now, the United States had carried out most of its strikes in the afternoon after stock trading closed, to limit the market impact of attacks on Iran. This time it began at noon.
Iran's state broadcaster IRIB reported that explosions were heard in Bandar Abbas, home to a major port in southern Iran, and on Qeshm Island in the Strait of Hormuz. It added that a civilian airport in Jiroft, in the southeast, was also attacked.
Trump also issued a warning to Iran. Writing on Truth Social, he described the operation as retaliation for Iran's failed attempt to add more mines in the strait and for the missile attack on U.S. bases in Jordan. "If the failed nation of Iran retaliates, it will be hit again, far harder and at a much higher level," he wrote, adding that it would not be the largest attack. The biggest one, he said, was still waiting, and once it was over there would be almost nothing left of Iran.
Trump went further in a phone call with Fox News reporter Trey Yingst, who said on air that the president had threatened that the day's strikes were very powerful and that a third attack would completely wipe out Iran as a country. Asked which IRGC facilities had been hit, Trump said "many radar facilities," adding that Iran had been trying to rebuild its radar systems but that the United States had been watching and struck before the work was finished.
Iran did not stand still. Iran's semi-official Tasnim news agency said a decisive operation by the Iranian military to confront the American enemy had begun, and that Iranian missiles and drones were striking U.S. bases and key facilities in the region. Axios reported that Iran had fired ballistic missiles at a U.S. base in Jordan.
Financial markets swung sharply. On the ICE Futures exchange in London, Brent crude for November delivery settled 4.6% higher at $94.65 a barrel, after topping $95 during the session. On the New York Mercantile Exchange, West Texas Intermediate for October delivery closed 5.2% higher at $90.22 a barrel. Brent was at its highest since July 24 and WTI since July 23. The U.S. 10-year Treasury yield rose above 4.8% at one point.
