US warns of targeting bridges and power plants after renewed attacks on shipping, as $37.5bn conflict escalates and oil prices surge

U.S. President Donald Trump has issued a fresh and stark warning to Iran, threatening to strike critical infrastructure, including bridges and power plants if Tehran continues targeting vessels in the Strait of Hormuz.

In a strongly worded message posted on social media, Trump declared that any attack on shipping whether by missile, drone, or other means would be met with immediate retaliation against Iranian infrastructure. He added that the United States is “not finished” with the ongoing conflict, which has already dragged on for months and cost Washington an estimated $37.5 billion.

Tensions have surged following the collapse of a preliminary agreement between both countries, after Iran reinstated its blockade of the strategic waterway. The Strait of Hormuz remains a vital global transit route, and renewed hostilities have rattled international markets, pushing oil prices higher and intensifying economic concerns.

Despite the escalation, U.S. Secretary of State Marco Rubio signaled that Washington remains open to diplomacy, noting that a negotiated resolution is still possible, although he questioned Iran’s seriousness in ongoing talks mediated through third parties.

Meanwhile, reports from Iranian media indicated that a U.S. missile strike hit Larak Island within the strait, with damage assessments still underway. The U.S. military also confirmed it had carried out its eleventh consecutive night of strikes targeting Iranian military assets, aimed at weakening Tehran’s capacity to threaten maritime traffic.

The conflict could widen further, with Trump previously identifying a suspected underground nuclear-related site near Natanz—known as Pickaxe Mountain as a potential target. Iran has strongly denied the existence of any nuclear activity at the location, warning that any strike there would be viewed as a major escalation and would trigger broader retaliation against U.S. interests and its allies.y

Across the region, tensions are spilling over. Gulf states reported intercepting Iranian drones and missiles, with Kuwait, Jordan, and Bahrain all activating air defenses. Iran, in turn, claimed responsibility for targeting U.S. assets and bases across the region, including in Kuwait and Jordan.

Adding another layer of risk, Iran-backed Houthi rebels in Yemen have threatened to blockade Saudi ports, raising fears of further disruption to global oil supply chains. Although no new attacks have been confirmed, shipping activity in the Red Sea has already shown signs of caution, with some tankers reversing course.

The ongoing crisis has driven Brent crude prices above $95 per barrel at one point, underscoring the global economic stakes tied to the conflict.

At home, Trump faces mounting political pressure to bring the costly war to an end, especially as it weighs on American voters ahead of key elections. However, the president has so far resisted calls to scale back military operations, insisting the U.S. will not withdraw at this stage.