The US military has initiated new strikes on Iranian targets, responding to an attack on American forces in Jordan that occurred on Wednesday. This action follows a period of reduced violence between the two sides and has increased concerns about a potential return to widespread conflict in the region.
US central command stated in a social media post that "dozens" of targets belonging to Iran’s Revolutionary Guards Corp were struck over two hours. This barrage came after the US, in partnership with Saudi Arabia, struck Iran-backed militias in Iraq on Wednesday, resulting in the deaths of at least 20 fighters and six Iranian advisers. These renewed hostilities have caused oil prices to surge, with Brent crude jumping 7.3% to over $88 a barrel.
Separately, US government borrowing costs have reached their highest point since 2007. This follows the Federal Reserve's decision to keep its key interest rate unchanged, fueling fears that it may not act quickly enough to control rising inflation. Federal Reserve Chair Kevin Warsh affirmed the central bank's commitment to tackling increasing prices.
The decision to hold rates steady has unsettled investors, who are concerned about the US economy's capacity to manage inflation, which has been linked to Donald Trump’s war in Iran. US inflation had cooled to an annual rate of 3.5% in June after a brief ceasefire between Washington and Tehran, but this ceasefire has since ended. US stocks experienced sharp declines on Wednesday, with the S&P 500 index closing down 1.5%, the Dow Jones industrial average falling 2.2%, and the Nasdaq dropping 1.7%.