Trump Threatens Iran After Missile Attacks in Strait of Hormuz

Tensions between the United States and Iran escalated on July 7, 2026, after the Islamic Revolutionary Guard Corps fired missiles at commercial vessels in the Strait of Hormuz. The attacks, which included a projectile strike on the Qatari-owned LNG carrier Al Rekayyat off the coast of Oman, caused a ship fire and drove crude oil prices higher after a brief period of decline.

President Donald Trump responded to the escalation by stating the United States would either reach a deal or "finish the job." He warned that U.S. forces could destroy Iran's bridges and knock out its electricity and power-generating plants in a single afternoon. These threats follow a volatile period that began in February 2026 with U.S.-Israeli air operations that killed Supreme Leader Ayatollah Ali Khamenei.

Iran's Foreign Minister Abbas Araghchi declared that negotiations for a final deal will not commence if military threats continue, citing a June 18 memorandum of understanding that requires both sides to refrain from the use of force. While the U.S. and Iran had recently agreed to lift naval blockades and reopen the strait to normalize oil traffic, the recent attacks and threats have reintroduced a risk premium to global oil benchmarks. In Tehran, mass funeral processions for Ayatollah Khamenei continued as Iranian military officials placed forces on full alert.