Trump Vows Heavy Strikes as Iran Missile Attack Spikes Oil

Oil prices surged on July 30, 2026, with Brent crude rising nearly 8% after the Islamic Revolutionary Guard Corps launched ballistic missiles at U.S. military installations in Jordan. While air defenses intercepted the missiles, Donald Trump responded by authorizing a heavy wave of strikes against Iran and coordinating with Saudi forces to target Iran-backed militias in Iraq. Trump warned that Iran would "get a beating" and stated the U.S. would hit the country "very hard," though he noted that diplomatic talks would continue.

Maritime instability compounded the energy crisis as drone strikes targeted natural gas vessels off the coast of Egypt and Houthi rebels intensified attacks in the Red Sea and Bab el-Mandeb Strait. Traffic in the Strait of Hormuz also became limited, further pressuring global supplies. These events coincided with a U.S. Energy Information Administration report showing crude inventories fell to their lowest level since 2018.

Global markets reacted with high volatility. Asian shares mostly declined, including a significant drop in South Korea's Kospi index. In the U.S., the Federal Reserve held interest rates steady, with Chairman Kevin Warsh signaling a commitment to return inflation to 2% while limiting forward guidance.