US and Iran Engage in Escalating Military Threats Amid Ongoing Conflict

The conflict between Iran and the United States continues to escalate, with both sides threatening each other with 'major military punishment'. US President Donald Trump warned that the US would hold Iran responsible for the actions of its allies, the Houthi rebels in Yemen.

Iran's army spokesperson Mohammad Akraminia said that retaliatory attacks will continue as long as US attacks on Iranian infrastructure and coastal areas continue. The Houthis have declared a blockade of Saudi ports and claimed attacks on tankers in the Red Sea, causing oil prices to surge past $100 a barrel for the first time since May.

UN Secretary-General Antonio Guterres warned that the situation is 'getting out of control' and 'teetering on the edge of the unimaginable', while European Central Bank President Christine Lagarde cautioned that the energy shock could intensify further, pushing up inflation and potentially leading to a September eurozone interest rate hike.