U.S. President Donald Trump promised "major military punishment" for Iran and its Houthi allies after the Yemeni fighters struck two Saudi oil tankers in the Red Sea. This aggressive act extended the Middle East war to a second major shipping chokepoint. Trump stated on social media that the U.S. would hold Iran responsible if such attacks recurred, explicitly identifying the Houthis as a "Surrogate and/or Proxy of Iran." He warned that "major military punishment will be inflicted upon Iran and, of course, the Houthis, themselves."
Trump told Axios he was considering re-launching major combat operations in Iran, indicating he was close to a decision. He was quoted by the news outlet saying, "They haven't received enough pain yet." On social media, the President asserted that "any and all damages done" to cargo ships would be paid for with "Iranian Money," referencing frozen Iranian assets held by the United States. He did not specify how this would be executed.
Iranian Foreign Minister Abbas Arachi responded on X, calling the seizure of another nation's assets for "unrelated future claims" an "incendiary precedent." He added on Friday that "No one's assets were safe once governments normalised such confiscation," predicting that "Ensuing chaos will not be pretty or peaceful."
Iran's Proxy War Escalates
The U.S. military confirmed late on Thursday it completed its latest round of strikes on Iran, marking a 13th consecutive night of American attacks. These strikes lasted over two hours, according to the U.S. Central Command. CENTCOM declared it "targeted Iranian military command centers, drone storage facilities, communication networks, coastal surveillance sites and maritime capabilities to further diminish the threat Iran poses to civilian mariners and commercial vessels transiting the Strait of Hormuz." The military's statement linked these strikes directly to the Houthis' claim of hitting two tankers on Thursday.
The Houthis, who maintain control over northern and western Yemen, announced they were imposing a naval blockade on Saudi Arabia. Saudi Arabia has already diverted millions of barrels of oil daily by pipeline to the Red Sea to bypass Iran's existing blockade in the Strait of Hormuz. Houthi forces claimed responsibility for missile and drone strikes on the Saudi oil tankers Encelia and the Layla. A maritime security source reported the Encelia sent a distress call after being struck by a missile near the Saudi port of Jizan in the Red Sea on Wednesday. Saudi state news agency SPA confirmed the strike caused a fire at the bow of the vessel. Reuters could not immediately verify the attack on the Layla or other battlefield accounts, though President Trump mentioned two attacks on Saudi tankers.
US Targets Iranian Terror Infrastructure
Fears that this disruption could expand to block another critical sea route sent global oil prices surging. Brent crude rose more than 6%, breaching the $100 a barrel level for the first time since May. Two weeks after the effective collapse of an interim truce intended to end the war, the U.S. military launched air strikes on Iran late on Thursday and early on Friday, continuing a 13th consecutive night of attacks. This prompted Iran to fire at neighboring Arab countries hosting U.S. bases.
On both Thursday and Friday nights, Iranian state media reported missiles struck Qeshm Island on the Strait of Hormuz. This virtually closed waterway is a focal point of a war now in its fifth month, a conflict that has killed thousands and fueled concerns of a global economic downturn. Iranian state broadcaster IRIB reported four people were killed and five injured in a U.S. missile attack on the Iranian city of Ahvaz.
Iran stated it attacked U.S. missile systems, weapons, and fuel storage sites in Jordan, alongside U.S. military posts in Kuwait. Jordan's army confirmed engaging four Iranian missiles and six drones in the past day, intercepting all but one missile, which landed in an uninhabited area. Iran's Revolutionary Guards claimed they struck a U.S. electronic warfare unit at Al-Adiri base in Kuwait, alleging unspecified casualties. This was in response to an overnight strike on Iran's Shalamcheh border crossing with Iraq. Neither the United States nor Kuwait has reported casualties at the base. Iranian military spokesperson Brigadier General Mohammad Akraminia stated Iran would continue retaliating as long as the U.S. attacked its infrastructure and coastal areas.
Global Commerce Under Siege
Daily vessel transits of the Strait of Hormuz remained steady at three for each of the past three days, from July 22 to July 24. This occurred amid continuing shipping risks in the Middle East and as oil prices surged back to $100 a barrel. Data from analytics firm Kpler showed three vessels passed through the Strait of Hormuz each day during this period. On Friday, the laden very large crude carrier Romania Prosperity appeared off Fujairah outside the strait with Murban crude, its destination unknown. Two empty soft commodity bulk carriers exited the strait into the Gulf.
On Thursday, VLCC New Giant, loaded with 2 million barrels of Iraqi Basrah crude, exited the strait, scheduled to arrive at China's Rizhao port by mid-August. Two other ships, including the empty VLCC Noble, also entered the Gulf via the Strait of Hormuz on Thursday.
Meanwhile, at the Bab el-Mandeb strait, commodity vessel transits totaled 32 on July 23, an increase from 26 the day before. Two crossings were recorded for July 24 so far. Of the Thursday crossings, 14 vessels entered the Red Sea, and 18 exited the strait into the Gulf of Aden. Nine of the 18 ships exiting Bab el-Mandeb carried crude oil, including two loaded Chinese supertankers bound for China. The clean tanker Torm Innovation, carrying approximately 500,000 barrels of naphtha for Asia, made a slight turn for the Suez Canal exit instead of its typical Bab el-Mandeb exit. Regional trade sources indicated rerouting ships via the Suez Canal to Asia could extend the voyage nearly three times as long. Saudi Aramco has begun offering additional crude cargoes loading at Egypt's Mediterranean port of Sidi Kerir as a workaround from its Red Sea ports.