Trump Not Keen on Deal as War Escalates

The conflict between the US and Iran escalated sharply, with American forces carrying out a fresh wave of strikes and Iran saying it had retaliated.

Meanwhile President Donald Trump downplayed the chances of a deal, writing in a post on Truth Social that he's "not trying to force Iran to the bargaining table." 

"I couldn't care less if they sign a worthless, to them, agreement," Trump said. "I like our position now much better," the president continued, repeating claims that Iran's economy was on the verge of collapse.

US Central Command said that the targets in the now-completed operation included "air defense sites, radar systems, maritime assets and facilities, mine laying capabilities, and communications sites" associated with the Islamic Revolutionary Guard Corps. 

"The strikes follow recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members," Central Command added in the statement posted on X on Tuesday evening. It was the second round of US strikes in about three days, after American forces this week hit Iranian rocket launchers preparing to send mines into the Strait of Hormuz.

Within hours, Iran said its forces had launched a "decisive operation" against US bases in the region, the semi-official Tasnim news agency reported. Tehran said it fired missiles at an American base in Jordan and at a US military facility in Bahrain. Kuwait reported that it intercepted incoming fire.

The US military also attacked two Iranian tankers under a new "tanker for tanker" policy approved by Trump, Axios reported, citing an American official it did not name. This came about a day after two oil supertankers attempting to exit the strait were hit in quick succession by projectiles, maritime security consultant Marisks said.

Oil prices rose further on news of the strikes, with Brent advancing 2 percent to about $96.50 a barrel. The increase has pressured bonds, pushing global yields to the highest since 2008, as traders increased bets the Federal Reserve will raise interest rates.

The renewed conflict followed weeks of relative calm, during which the Trump administration said it was pivoting from military action to applying economic measures against Tehran. Oil shipments through Hormuz recovered to roughly half of prewar levels as a result of the dip in attacks, thanks in part to clandestine shuttle runs from major Middle East producers. 

Trump said the latest strikes were retaliation for Iran's attempt to mine the strait and an earlier attack on a military base in the region. He threatened further action if Tehran responded.

US Treasury Secretary Scott Bessent told reporters at the G-20 finance ministers summit in Asheville that Iran's leaders were "panicked" over the country's economic problems and predicted at some point they would be ready to negotiate an accord to end the war. While Bessent has vowed an "economic onslaught" against Iran and its trading partners, countries with ties to Tehran have so far shrugged off the threat and analysts have been underwhelmed by US actions.

Any sustained return to fighting risks driving up energy costs and inflation, unnerving global investors and further complicating Republicans' efforts to retain control of Congress in November's midterm elections.

For Iran, a return in near prewar shipping volumes risks undermining its leverage in any future peace negotiations.  

Explosions were heard in Bandar Abbas, Chabahar and Kuhestak in southern Iran, state-run Nour news reported Tuesday. IRIB said that at least two civilians were killed in Hormozgan.

US Representative Mike Rogers, an Alabama Republican, said he anticipated further escalation of the fighting after a closed-door briefing with a top military commander Tuesday.

There was no immediate confirmation from the US of the Iranian claims of attacks on the base in Jordan, though local media reported air defenses intercepted incoming missiles. Jordan, a US ally, has increasingly become a target of Tehran's retaliation, with two American service members killed there in an attack in July.

Bessent sought to play down the importance of Hormuz, saying the strait would eventually become irrelevant because of the increased use of oil pipelines. The comment appeared not to take into account the time needed to effect such a major switch in energy supply routes, while other key commodities, including aluminum and fertilizer, would still need to use the strait. 

The US and Iran have issued conflicting reports on safety of navigation in the strait, with a top US commander declaring "international shipping lanes are open" after American forces had cleared Iranian mines. That statement, which followed similar claims from Trump, has been privately doubted by US allies, Bloomberg reported last week. 

Trump on Monday called the conflict a "little war," though the US and Iran have shown little appetite to resume negotiations since an interim peace agreement collapsed more than two months ago. The State Department on Tuesday warned Americans in the region of "the potential of unforeseen escalation." Oil is up more than 45 percent this year.

Speaking at the Shanghai Cooperation Organization summit in Kyrgyzstan, Iran President Masoud Pezeshkian was downbeat about prospects for renewed talks, while Qatar said mediation efforts were continuing.