Iran's Revolutionary Guard threatens wider war if U.S. escalates
A tanker in the Strait of Hormuz was hit by an unknown projectile as U.S. and Iranian officials prepare for talks in New York this week
Published
Map: The Gulf and Hormuz, marking Strait of Hormuz, Ras Tanura
Iran's Revolutionary Guard says it could expand the conflict if the United States escalates further. The force says it is ready to change its weapons, tactics and targets for a prolonged confrontation.
The warning comes as tensions rise around the Strait of Hormuz, where a tanker was struck by an unknown projectile. The United States has redirected 110 vessels through the strait as attacks on shipping increase. Saudi Aramco loaded 14 million barrels of crude onto seven tankers near Ras Tanura port on Sunday.
Diplomacy continues alongside the military moves. Iranian and U.S. officials are due in New York this week for talks at the United Nations, and Qatar says it is working to broker a short-term agreement between the two countries. On Monday, President Trump said Iran "is not doing well" and that he had meetings scheduled on the matter that day.
The escalation threat and the Hormuz incident add concrete risk to an already volatile situation. The Chicago Fed has warned that higher oil prices could force interest rate hikes, and markets are already pricing in elevated energy costs. A prolonged confrontation with Iran would tighten financial conditions at a time when growth is already under pressure from tariffs, adding weight to a bearish outlook for markets.