The United States and Israel intensified their military campaign against Iran on Tuesday, unleashing what Pentagon officials and eyewitnesses on the ground described as the most severe and concentrated airstrikes since the conflict began. This escalation comes despite widespread speculation in global financial markets that President Donald Trump may soon seek to bring the hostilities to a close. The dramatic increase in military operations has heightened tensions not only in the region but also across the global economy, as Iran’s Revolutionary Guards issued a stern warning that they would obstruct oil exports from the strategically vital Gulf region unless the U.S. and Israeli attacks cease immediately.
U.S. Defense Secretary Pete Hegseth emphasized the scale and sophistication of the strikes during a Pentagon briefing, stating, “Today will be yet again, our most intense day of strikes inside Iran: the most fighters, the most bombers, the most strikes, intelligence more refined and better than ever.” This declaration underlines the commitment of the U.S. military to apply maximum pressure on Iran’s infrastructure and military capabilities, signaling a significant escalation in the ongoing conflict.
Meanwhile, residents of Tehran described the night of bombardment as unprecedented in its ferocity. One local, speaking anonymously due to security concerns, recounted the harrowing experience: “It was like hell. They were bombing everywhere, every part of Tehran.” The psychological impact on civilians is evident, with many families, including children, now fearful of sleeping through the relentless attacks. The previous day saw two five-story residential buildings in eastern Tehran severely damaged, with entire floors and walls blown apart, leaving behind only a fragile concrete skeleton. Footage from Iran’s Red Crescent revealed rescuers carrying victims in body bags, while recovery efforts continued even as fresh missile strikes targeted nearby intersections, compounding the devastation.
Despite the escalating violence, global markets have shown signs of cautious optimism, largely influenced by President Trump’s recent comments suggesting the conflict might conclude soon. On Monday, Trump described the war as “very complete, pretty much,” which investors interpreted as a signal that the administration is aiming to avoid a prolonged confrontation that could severely disrupt global energy supplies. This sentiment helped reverse an initial historic surge in crude oil prices, with Asian and European stock markets recovering from sharp declines and Wall Street regaining levels last seen before the conflict erupted in late February.
Sources familiar with Israel’s military strategy revealed that the Israeli Defense Forces are intent on inflicting maximum damage before the opportunity for further strikes diminishes, operating under the assumption that the U.S. president could decide to end the war at any moment. Israeli Foreign Minister Gideon Saar echoed this stance, stating that Israel does not envision a protracted war and is actively consulting with Washington on the appropriate timing to halt military operations.
In a press conference on Monday, President Trump’s remarks appeared to reassure markets, as he downplayed the likelihood of a drawn-out conflict that could trigger an economic crisis akin to the oil shocks of the 1970s. He asserted that the U.S. had already dealt significant blows to Iran and expressed confidence that the war would conclude within a shorter timeframe than initially anticipated. However, Trump refrained from reiterating earlier demands that Iran allow the U.S. to select its new leadership, leaving the precise objectives of the conflict somewhat ambiguous. Meanwhile, congressional aides anticipate that the White House will soon request up to $50 billion in additional funding to sustain the military campaign. Reports indicate that the U.S. expended approximately $5.6 billion worth of munitions during the first two days of strikes, highlighting the immense financial cost of the operation.
Iranian officials have responded with defiance, rejecting calls for a ceasefire and vowing to retaliate forcefully. Mohammad Baqer Qalibaf, the speaker of Iran’s parliament, declared on social media that the aggressors must be struck decisively to deter any future attacks on Iran. Foreign Minister Abbas Araqchi also dismissed the possibility of resuming negotiations with the U.S., signaling Tehran’s unwillingness to back down despite mounting pressure. The conflict has severely disrupted maritime traffic through the Strait of Hormuz, a critical chokepoint through which approximately 20% of the world’s oil and liquefied natural gas shipments pass. With global oil storage nearing capacity, several major producers have already reduced output in response to the crisis.
Following the appointment of hardliner Mojtaba Khamenei as Iran’s new supreme leader, oil prices briefly surged to nearly $120 per barrel on Monday before retreating below $90 by mid-Tuesday. President Trump warned that any attempt by Iran to block oil shipments through the strait would provoke a devastating response from the U.S., promising to strike so forcefully that Iran and its allies would never regain control of the region. In contrast, a spokesperson for the Revolutionary Guards vowed that Tehran would prevent even a single liter of Middle Eastern oil from reaching the U.S. or its allies as long as the attacks continue, asserting that Iran alone will determine the conflict’s conclusion.
Should the war end swiftly, it is likely that Iran’s current leadership will remain in power. Large-scale rallies in support of the new supreme leader were held recently, despite widespread public desire for change and the memory of brutal crackdowns on anti-government protests in recent weeks. Since the U.S. and Israeli airstrikes began on February 28, Iranian state media report that at least 1,270 people have lost their lives. The conflict has also spilled over into Lebanon, where Israeli strikes targeting the Iran-backed Hezbollah group have resulted in numerous casualties, including the deaths of four Iranian diplomats in a hotel attack. Iranian missile strikes on Israel have killed 12 people, while attacks on U.S. military bases and diplomatic missions in the Gulf have caused significant damage to infrastructure, including airports and oil facilities.
