Trump threatens Iran and Houthi rebels with 'major military punishment'
US President Donald Trump has warned that Iran and its Houthi allies will face 'major military punishment' after Houthi attacks on Saudi oil tankers sent Brent crude above $100 a barrel and sparked global alarm.
Threats and Warnings
US President Donald Trump said Thursday that the United States would hold Iran responsible for the actions of the Houthi rebels and warned that both would soon receive 'major military punishment'. The statement came after Tehran's Houthi allies struck Saudi shipping, sending oil prices soaring.
Escalation and Impact
The international oil benchmark Brent crude surged past $100 a barrel for the first time since May, up 7%. United Nations Secretary-General Antonio Guterres warned that the situation is 'teetering on the edge of the unimaginable', with 'one crisis feeding another'. European Central Bank President Christine Lagarde cautioned that the energy shock could intensify further and push up inflation, fueling speculation about a September eurozone interest rate hike.
German Defence Minister Boris Pistorius warned of 'dire consequences' for oil-importing economies and said there is no prospect of a ceasefire or peace. The war resumed this month after a brief ceasefire.
International Reactions
Iran's army spokesperson said retaliatory attacks will continue as long as US attacks continue. The Houthis declared a blockade of Saudi ports and claimed attacks on two tankers, the Encelia and the Layla. Kuwait reported a drone attack and intercepted missiles. The US Central Command reported its 12th consecutive night of strikes aimed at degrading Iran's ability to threaten civilian mariners.
Iranian state media reported a US attack killed two people at Shalamcheh and missiles hit Bushehr. US Secretary of State Marco Rubio said the Houthis were 'suckered' into attacking Red Sea shipping by Iran. Oman, a key mediator, voiced great concern and is working to resume talks between the Houthis and Saudi Arabia.
