Tensions between Iran and the United States escalated sharply on Wednesday after Tehran warned that any fresh American attack would trigger a war extending "beyond the region". The warning came after US President Donald Trump revealed that he had come close to approving renewed military action against Iran earlier this week.
Six weeks after Trump paused "Operation Epic Fury" under a ceasefire arrangement, diplomatic efforts between the two sides remain stalled. Iran recently submitted a fresh proposal to Washington, demanding control over the Strait of Hormuz, compensation for war damages, removal of sanctions, release of frozen Iranian assets, and withdrawal of US troops from the region — conditions previously rejected by the US administration.
Speaking at the White House, Trump said he was "an hour away" from restarting bombing operations before deciding to give diplomacy more time. He also expressed confidence that the conflict could end "very quickly", while Vice President JD Vance claimed the US was in a "pretty good spot".
Iran's Revolutionary Guards, however, issued a stern warning, stating that if aggression against Iran continued, the promised regional war would spread beyond West Asia. Tehran has repeatedly threatened retaliation against countries hosting American military bases in the region.
Meanwhile, the Strait of Hormuz — one of the world's most critical energy routes — remains heavily disrupted due to the ongoing conflict. Iran had largely restricted passage to its own vessels after the US-Israeli military campaign began in February, severely affecting global energy supplies. However, there were signs of easing on Wednesday as two Chinese oil tankers carrying nearly four million barrels of crude successfully exited the strait. South Korea also confirmed that one of its tankers was transiting the route in coordination with Iran.
According to shipping monitor Lloyd's List, 54 ships crossed the strait last week, nearly double the previous week's figure, though still far below pre-war levels of around 140 daily crossings.
Global oil prices continued to fluctuate amid uncertainty over the conflict. Brent crude prices fell nearly 1.5 per cent on Wednesday to below $110 per barrel, although prices remain significantly higher than earlier this year. Analysts say investors remain uncertain over whether Washington and Tehran can reach a lasting peace agreement, especially as the US stance appears to shift frequently.
Despite the ceasefire largely holding since April, tensions remain high. This week, Saudi Arabia and the United Arab Emirates reported fresh drone attacks allegedly launched by Iran-backed militias in Iraq.
Israeli Prime Minister Benjamin Netanyahu and Trump have repeatedly said the campaign aims to dismantle Iran's nuclear and missile programmes and weaken Tehran-backed militias. However, despite months of conflict, Iran continues to retain significant missile capabilities and enriched uranium stockpiles, while its clerical leadership remains firmly in power.
