Iran has issued a stark warning that it will retaliate against key targets in the Middle East if US President Donald Trump follows through on threats to strike Iranian infrastructure.
The escalation comes as Washington has set a deadline for negotiations to resume, signaling a potential shift from diplomatic pressure to direct military action.
The threat of renewed conflict in the region immediately heightens risks for the Strait of Hormuz, the critical chokepoint through which a significant portion of global oil supplies transit.
Markets are likely to price in a higher risk premium for energy commodities and shipping assets as the possibility of disruption to tanker routes increases.
This development follows a period of heightened tension, with Iran previously announcing retaliatory strikes against targets linked to the United States.
The Iranian armed forces have also warned that any unauthorized US interference in the Strait of Hormuz would trigger a swift military response, underscoring the vulnerability of the corridor.