What to know as US strikes Iran for first time in weeks, ups economic pressure

The United States has launched its first strikes against Iran in a month, while also threatening to step up its economic pressure campaign. Sunday’s attack targeted Iranian rocket launchers in the Strait of Hormuz, with US officials saying they had thwarted a fresh effort to mine the strategic waterway. At the same time, US Treasury Secretary Scott Bessent said he was ready to inflict “financial violence” on any country which continued to cultivate economic ties with Iran. “We are showing people that we know who you are, you know who you are, and this has got to stop,” he told the Associated Press ahead of a G20 meeting with his counterparts. Shorts US claims it prevented Iran re-mining Strait of Hormuz US Central Command (CENTCOM) said the fresh attacks were carried out after Iranian Revolutionary Guard Corps soldiers were observed preparing to launch rockets with sea mines into the Strait of Hormuz on Sunday. The US announced it had completely cleared mines placed throughout the strait’s shipping lanes last week. The IRGC said two people were killed and another two injured in the strike, branding it an act of aggression and vowing “response and punishment”. Iranian state television later showed footage of what it said were ballistic missiles being fired toward US bases in Jordan. CENTCOM disputed the attack was an act of aggression, saying: “In essence, Iran created the threat and the US military eliminated it to protect civilian mariners, commercial shipping, and the free flow of global commerce”. It is the first time since 29 July the US has confirmed it targeted Iran, with President Donald Trump saying on 1 August he would hold off further strikes at the urging of Gulf allies. Oil prices jump over fears of escalation Oil prices jumped in the wake of the strike and news from the United Kingdom Maritime Trade Organization (UKMTO) a cargo vessel had been struck in the strait on Saturday. UKMTO said an unknown projectile struck a tanker north of Khasab, Oman, but reported no casualties. Brent crude, the international benchmark oil price, rose 1.9 per cent to US$89.79 a barrel. Prices are lower than during the early weeks of the conflict, but remain substantially above the US$70 a barrel average from before the war. Bessent said he was ready to inflict “financial violence” on any country which continued to cultivate economic ties with Iran (Photo: AP Photo/Gerald Herbert) Traffic in the Strait of Hormuz remains at an effective standstill, despite claims from Trump the waterway is “completely open”, pushing oil prices higher as supply constraints worsen. The President has also consistently fueled fears of escalation, which have resulted in short-term price spikes. Trump posted an apparently AI-generated video to social media following Sunday’s strike captioned: “Kharg Island being blown to smithereens!!!” – Kharg Island is home to Iran’s largest and most important oil refining and storage hub. The President has made several threats to target the island, including seizing it completely, which have served to spook markets and push oil prices temporarily higher. Bessent vows ‘financial violence’ against those with economic ties to Iran Speaking ahead of a G20 meeting with international counterparts, the US Treasury Secretary revealed plans to sanction a new, unnamed bank as he attempts to step up economic pressure on the Iranian regime. “This is going to be financial violence if we have to,” Bessent said. However, the Treasury Secretary was coy on how the US would deal with China on the issue, hinting at the challenge he faces in enforcing any new sanctions. China is Iran’s largest economic partner and imposing so-called secondary sanctions on Beijing for failing to isolate Tehran could risk re-igniting a damaging trade war. Despite this, Bessent insisted “all options are on the table” as he claimed suggestions the US was reluctant to take on China were “a completely false narrative” concocted by the media.