Iran-US war latest: Trump vows to hit Iran ‘hard’ after US Larak Island strikes trigger retaliation

Global oil prices have risen again after the US and Iran renewed strikes on Monday for the first time in more than a month.

Brent crude oil, the international standard, climbed above $91 per barrel, while US oil was trading at $86.26, up 3.44 per cent.

Since the beginning of the war, Brent crude oil is about about 25 per cent, presenting a growing problem for Donald Trump ahead of the midterm elections.

Overnight Iranian attacks were part of a “limited and contained confrontation”, a senior Iranian source told Reuters on Monday.

However, they added that Tehran would deliver a harsh response if it was attacked again.

President Donald Trump has said that he will “hit Iran hard” in retaliation for Iranian strikes on US military bases in Jordan.

The US leader is reported to have told Fox News: “We’re going to hit them hard. There will be a response.”

The US Defence Department was forced to deny that the US had struck Iran’s primary oil export hub, with an official confirming that strikes had exclusively targeted IRGC positions on Larak Island.

Iran launched retaliatory strikes targeting US military bases in Jordan and the United Arab Emirates following the attacks on Larak Island, which were the first American strikes on the Islamic Republic since late July.

The US-Iran war is set to deal a severe financial blow to UK families, cutting into average household spending power by £2,400 over the next two years.

According to new analysis by the Centre for Economics and Business Research (CEBR), a combination of surging inflation and sluggish wage growth is estimated to knock £1,100 off average real household incomes in 2026, followed by an additional £1,300 loss in 2027.

In total, the think tank calculates that the Middle East conflict will wipe a staggering £70.4 billion off the UK’s real disposable income.

The Pentagon’s spokesman is facing backlash for falsely claiming that it is a “crime” for journalists to publish classified information following a report that some military leaders were critical of extending President Donald Trump’s war in Iran.

A classified Pentagon assessment reviewed by The Washington Post reportedly advised Defense Secretary Pete Hegseth that prolonging the conflict in Iran was weakening the U.S. elsewhere, including on home soil.

President Donald Trump was sending a message to Iran with his social media post about Kharg Island, Vice President JD Vance said on Monday.

“The president likes to switch it up on social media a little bit. He would be the first to say he doesn’t make announcements about military actions on social media, but I think that he’s sending a message to the Iranians,” Vance said when asked about Trump’s post.

The Pentagon was forced to deny that the attack took place after Trump alleged that the oil export hub had been “blown to smithereens”.

US treasury secretary Scott Bessent has said that the goal of US sanctions on Iran is “to create the conditions that they will want to come to the table” for negotiations.

Bessent said Iran’s economy could collapse in a matter of weeks, telling reporters: “We have the blockade, and we are going to continue exerting pressure, and we’ve had very good discussions here already,”

“I think it could be within weeks or months,” he said, but added, “the economy doesn’t have to collapse … we just have to have the regime come to their senses.”

The US-Iran war is set to deal a severe financial blow to UK families, cutting into average household spending power by £2,400 over the next two years.

According to new analysis by the Centre for Economics and Business Research (CEBR), a combination of surging inflation and sluggish wage growth is estimated to knock £1,100 off average real household incomes in 2026, followed by an additional £1,300 loss in 2027.

In total, the think tank calculates that the Middle East conflict will wipe a staggering £70.4 billion off the UK’s real disposable income.

Economic analysts attribute the shock to shipping disruptions along the Strait of Hormuz, which are hitting British consumers on multiple fronts.

The island holds around 90 per cent of Iran’s oil exports and could choke off the country’s economy for years. Maira Butt and James C. Reynolds report: