Iran warned Thursday that it would "crush" key infrastructure across the Middle East if the U.S. follows through on President Donald Trump's threat to strike Iranian power plants and bridges next week. The warning came from a spokesperson for Iran's top military command, who declared the Strait of Hormuz an "invincible red line" and vowed retaliation against any American interference in the strategic waterway.
Escalating rhetoric and military strikes
Trump said in a Tuesday Fox News interview that unless Iran negotiates, U.S. forces would target Iranian power plants and bridges starting next week. In response, Iran's military spokesperson stated on Telegram that all remaining infrastructure in the region would be "crushed under the steel blows" of Iran's armed forces. The spokesperson added that Iran would not allow the U.S., as an "extra-regional country," to interfere in the Strait of Hormuz.
The U.S. has already conducted fresh strikes against Iranian targets. U.S. Central Command said it hit Iranian command centers, air defense sites, missile and drone capabilities, and coastal surveillance facilities in multiple locations, including Bandar Abbas, to degrade Iran's ability to threaten commercial shipping in the Strait. The attacks followed earlier U.S. strikes in retaliation for attacks on commercial vessels in the waterway.
Potential stalemate and market reaction
Oil prices dipped slightly on Thursday, with Brent crude falling 0.5% to $84.42 per barrel and West Texas Intermediate down 0.2% to $79.47. Analysts suggest the conflict may settle into a stalemate. Clark H. Summers, adjunct professor at Belmont Abbey College, said U.S. precision strikes would be effective tactically but unlikely to stop Iran's ability to produce or stockpile drones and missiles. He noted that Trump's recent proposal for a 20% shipping fee on the Strait of Hormuz—later walked back—indicates awareness that the war's costs are eroding public support.
Summers argued that only a serious ground threat could destroy Iran's Islamic Revolutionary Guard Corps as a governing body, but such an operation is beyond current U.S. Army and Marine Corps capabilities. A raid on Kharg Island to tighten a blockade on Iranian oil exports might help force a negotiated peace, but he doubted the IRGC would honor any agreement.
Richard de Meo, founder of brokerage Attara, said markets have become desensitized to the U.S.-Iran war, with some businesses taking false comfort from range-bound conditions despite sharp volatility in energy markets. Treasury teams are increasing hedge ratios and extending tenors to secure protection against future uncertainty.