Iran War Shakes Region as Trump Vows 'Whatever It Takes'

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Iran War Shakes Region as Trump Vows 'Whatever It Takes'

watchlist :: 11hrs ago :: source - bloomberg

By Patrick Sykes and Christine Burke

(Bloomberg) -- The US-Israeli war on Iran reverberated across the region for a fourth day, with oil and gas prices surging and the world adjusting to a conflict that President Donald Trump says has no fixed timeline.

Iran sent a fresh wave of missiles at countries including Qatar, Bahrain and Oman that host US bases, with Doha saying targets weren’t limited to military interests and included the main airport.

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Israel said it struck the leadership compound in Tehran in an ongoing bombardment of the capital of the Islamic Republic and sent soldiers into southern Lebanon, where the Iran-aligned Hezbollah militia is based.

Two drones struck near the US embassy in Riyadh overnight, causing limited damage. An adviser to Iran’s Islamic Revolutionary Guard Corps commander told state TV that forces “will set fire to any ship attempting to pass through” the Strait of Hormuz — a vital shipping lane.

China, which buys most of Iran’s oil, urged “all sides” to ensure the safe passage of ships through the waterway, where traffic has effectively halted. The United Arab Emirates and Qatar are privately lobbying allies to help them persuade Trump to reach for an off-ramp that would keep the conflict short, according to people familiar with the matter.

Global benchmark Brent spiked to $85 a barrel for the first time since July 2024, after rising about 7% on Monday. European gas prices surged as much as 32% on Tuesday morning.

QatarEnergy halted the production of some chemicals and metal after Iranian attacks forced the shutdown of its major liquefied natural gas plant. Falling debris from an intercepted drone caused a major fire at the UAE oil-trading hub of Fujairah.

US Defense Secretary Pete Hegseth rejected the idea of an “endless” war with Iran on Monday. But Trump later said the campaign could go on “far longer” than an initial four or five week projection, adding that the US will do “whatever it takes.” Both refused to rule out putting American boots on the ground, though Trump told NewsNation he didn’t think that would be necessary.

Iran’s Red Crescent has reported 787 people killed in the Islamic Republic so far. Six US soldiers have died in the conflict and about a dozen people in Israel.

The US military said in a Tuesday post on X that it destroyed “Islamic Revolutionary Guard Corps command and control facilities, Iranian air defense capabilities, missile and drone launch sites, and military airfields.” Iran acknowledged overnight that its Natanz nuclear facilities had been attacked.

The Israel Defense Forces said it’s conducting more airstrikes in Tehran, targeting the command centers of the Islamic Republic’s Interior Security and Ministry of Intelligence. The IDF blamed those institutions for “suppressing protests against the regime through violent measures.”

Speaking on national television Monday night, Iranian Foreign Minister Abbas Araghchi said Tehran has no quarrel with neighboring countries but is “taking on the American soldiers stationed there.” Saudi Arabia and the UAE have strongly criticized Iran for widening the conflict to their territories.

The State Department urged Americans to leave the Middle East, citing “serious safety risks” amid dangers from the war. It suggested US citizens in more than a dozen countries, including Israel, Saudi Arabia, Qatar and the UAE, depart by “available commercial transportation.”

That may prove challenging as nearly all civilian air traffic is closed across the Gulf after Dubai’s main airport, the world’s busiest aviation hub, was hit at the weekend. Emirates and Etihad Airways are planning to resume limited operations to ease some of the congestion.

The US said three fighter jets crashed in Kuwait due to an apparent friendly-fire incident, with aircrew ejecting safely.

The Trump administration will soon roll out a program to help mitigate rising energy costs, Secretary of State Marco Rubio told reporters in Washington. He said the campaign would only intensify.

“I’m not going to give away the details of our tactical efforts, but the hardest hits are yet to come from the US military,” Rubio said.

US justifications for the initial strikes have been varied, with officials citing regime change, the threat of Iran’s nuclear program, its military capablility and the domestic crackdown on protesters.

On Monday, Rubio said the campaign was aimed at destroying Iran’s ballistic missile program and its navy, in order to prevent threats to global shipping. But Israeli Prime Minister Benjamin Netanyahu said in a social media post that it was partly meant “to create the conditions for the brave Iranian people to cast off the yoke of tyranny.”

US intelligence officials have provided the administration with analyses of multiple potential scenarios following an attack on Iran, highlighting the uncertainty of what could unfold next.

Trump has called on the Iranian people to “seize this moment” and “take back your country”after the weekend killing of Supreme Leader Ayatollah Ali Khamenei, but it’s unlikely that any political opposition group will try to seize power.

Foreign Ministry Spokesman Esmail Baghaei said on Sunday that he hopes a successor to Khamenei will be elected “within the next few days.”

The US-Israeli operation began after three rounds of talks with Iran over a deal to restrict Tehran’s nuclear activities in exchange for sanctions relief. Omani mediators said the discussions had been fruitful before the bombing started.

The United Nations nuclear watchdog said Monday it’s frustrated by the collapse of diplomacy, adding that satellite images show Iran’s nuclear sites have been largely spared during the current round of strikes. The US and Israel targeted the facilities in a 12-day assault in June.

In the Islamic Republic, state media reported strikes on military and civilian sites, including one that killed over 140 people at a school in Hormozgan.

--With assistance from Jeff Mason, Kateryna Kadabashy, Alisa Odenheimer and Neil Munshi.

(Updates with fresh oil price highs, missile waves from start.)