Trump threatens Iran and Houthi rebels with 'major military punishment' Iran and the United States threatened to intensify attacks on Thursday after Yemen's Houthi rebels struck Saudi oil tankers in the Red Sea, driving Brent crude above $100 a barrel and fuelling fears of a widening regional conflict and renewed pressure on the global economy. Iran and the United States threatened on Thursday to step up attacks on one another after Tehran's Houthi allies struck Saudi shipping and sent oil prices soaring. President Donald Trump said the United States would hold Iran responsible for the Houthis' actions and warned both would soon receive a "major military punishment".

The international oil benchmark Brent crude surged past $100 a barrel for the first time since May, up 7%, while world leaders expressed alarm after Yemen's rebels hit oil tankers in the Red Sea. "The situation is getting out of control. It is teetering on the edge of the unimaginable," United Nations Secretary-General Antonio Guterres warned.

"One crisis feeds another. One escalation triggers the next," he told a meeting of the UN Security Council. European Central Bank President Christine Lagarde warned "the energy shock could intensify further" and push up inflation, feeding speculation about a September eurozone interest rate hike.

To display this content from YouTube, you must enable advertisement tracking and audience measurement. One of your browser extensions seems to be blocking the video player from loading. To watch this content, you may need to disable it on this site.

German Defence Minister Boris Pistorius, meanwhile, warned of "dire consequences" for oil-importing economies and said "nothing – absolutely nothing – suggests that a ceasefire, let alone peace, could be reached". The war resumed this month after a ceasefire that had lasted just a few weeks, throwing the region back into chaos as Iran and the United States battled for control of the vital Strait of Hormuz. "The armed forces' retaliatory attacks will continue as long as the US attacks on the country's infrastructure and coastal areas continue," Iran's army spokesperson Mohammad Akraminia said, according to state television.

Yemen's Houthis joined the conflict this week, declaring a blockade of Saudi ports and claiming attacks on tankers. Jordan and Kuwait both reported intercepting strikes as Iran's military and Revolutionary Guards claimed to be targeting US assets in both countries. To display this content from YouTube, you must enable advertisement tracking and audience measurement.

One of your browser extensions seems to be blocking the video player from loading. To watch this content, you may need to disable it on this site. Houthis step in While Trump has returned to war and his fierce rhetoric, the conflict is proving increasingly unpopular at home.

With midterm elections looming in November, the US House of Representatives passed a symbolic vote, backed by opposition Democrats and a handful of Republicans, calling for the president to halt the war. It came after US Central Command reported its 12th consecutive night of strikes, saying it aimed to "further degrade Iran's ability to threaten civilian mariners and commercial vessels transiting regional waters".