President Donald Trump signaled a continuation of the United States’ confrontation with Iran following a recent escalation in attacks in the Strait of Hormuz, a critical waterway for global oil shipments. Speaking on Wednesday, Trump downplayed concerns about rising oil prices resulting from potential military action, stating that a moderate increase in prices was acceptable and suggesting that the U.S. could take measures to mitigate any sharp rises.

The Trump administration has requested over $67 billion in funding from Congress to cover costs associated with ongoing military operations related to the conflict with Iran. However, lawmakers remain divided over the president’s approach, with Senate Minority Leader Chuck Schumer criticizing the administration for putting American troops at risk and for the economic impact of higher fuel prices on working families.

The recent surge in tensions came after a fragile ceasefire, established by a 14-page agreement signed on June 17, collapsed amid a series of retaliatory strikes. On Tuesday, three oil tankers traversing the Strait of Hormuz were attacked, including a Qatari vessel transporting natural gas. The tanker caught fire off the coast of Oman. Although Iran did not claim responsibility, Iranian state media reported that the Qatari vessel ignored warnings to turn back, suggesting Iranian involvement.

In response, the U.S. launched air and drone strikes targeting more than 80 Iranian sites, including approximately 60 small boats belonging to the Islamic Revolutionary Guard Corps (IRGC) patrolling the strait. Iranian state media confirmed the strikes struck multiple locations, including Sirik, Qeshm Island, Bushehr, and Bandar Abbas. A U.S. drone strike in Mahshahr reportedly killed an IRGC member.

Prior to the strikes, the White House revoked a 60-day temporary license that had allowed Iran to sell and deliver oil during the ceasefire. Iran retaliated with missile and drone attacks on U.S. military bases in Bahrain and Kuwait. Kuwaiti officials stated their forces intercepted two ballistic missiles and 13 drones without sustaining damage or casualties. Additionally, Iran claimed to have shot down a U.S. MQ-9 drone.

Global oil prices reacted sharply, rising by nearly 6% to over $78 per barrel, maintaining levels above those seen before the conflict escalated earlier in the year.

Amid the hostility, the funeral for Iran’s Supreme Leader Ayatollah Ali Khamenei, who was killed in an Israeli strike on February 28, proceeded with little disruption. A period of mourning is expected to conclude on Thursday with Khamenei’s burial in Mashhad. Iran had requested a “timeout” from U.S. leaders to allow attendance at the funeral, which Trump said he granted, though missile attacks followed soon after.

Trump voiced skepticism about further negotiations with Iran despite efforts by his envoys Steve Witkoff and Jared Kushner, calling Iranian negotiators untrustworthy. When asked about the prospect of deploying troops to Iran, Trump dismissed the idea, stating he would only consider a ground invasion if Iran was “completely eliminated” or an agreement was reached.

Iranian officials expressed defiance in response to U.S. pressure. Parliamentary Speaker Mohammad Ghalibaf declared the “era of bullying and extortion is over,” while senior advisor Ali Akbar Velayati accused the Trump administration of driving the region toward conflict. Velayati warned that Iran’s allied networks, known as the Axis of Resistance, would not remain passive in the face of what he described as humiliation and adventurism, stressing that they remain vigilant and prepared.

With both sides exchanging military actions and rhetoric, the future of talks addressing issues like the Strait of Hormuz and Iran’s nuclear program remains uncertain.