President Donald Trump warns of major military punishment for Iran as oil prices surpass $100 per barrel.
President Donald Trump stated that the U.S. will hold Iran responsible for further attacks as oil prices topped $100 a barrel for the first time since May. The administration announced that the U.S. will seek "major military punishment" for Iran following a 13th consecutive night of American strikes. The global oil market is facing significant pressure as two crucial chokepoints emerge. While the Strait of Hormuz remains throttled by Iran, the Houthi blockade of the Bab-al-Mandeb strait has created a second bottleneck. These constraints, combined with Russian diesel export bans and dwindling global inventories, are driving prices upward. The bond market is signaling heightened inflation concerns, with the 10-year Treasury yield reaching its highest level since January 2025. Additionally, the administration announced new tariffs of 10% to 12.5% on dozens of countries to address forced-labor violations. In the tech sector, Alphabet and Tesla shares pulled back due to heavy AI spending, while Intel reported its fastest revenue growth since 2011.