U.S.-Iran War Update: Trump Threatens to Bomb Iran’s Power Plants, Bridges if Hormuz Attacks Persist

The U.S.-Iran war continues to escalate with President Donald Trump threatening to destroy Iran’s infrastructure if it continues to attack ships in the Strait of Hormuz. Bitcoin has fallen today as the war disrupts global oil supply, sending oil prices to levels seen just before the two sides signed the Islamabad MOU.

Trump Makes New Threat In Latest U.S.-Iran War Escalation

In a Truth Social post, the U.S. president said that moving forward, they will bomb one bridge or power plant any time Iran shoots at a ship in the Hormuz Strait. He noted that the bridges and power plants will include those located next to or in the capital city of Tehran.

This comes as the U.S.-Iran war escalates again after violations of the MOU agreement. As CoinGape reported, oil prices have hit a five-week high, reaching their highest levels since June, just before the last ceasefire agreement.

The war continues to disrupt global oil supply, with the blockades at the Strait of Hormuz. About 20% of the global oil supply passes through this waterway. Meanwhile, the war could further impact global oil supply as the Iran-backed Houthis move to block the Bab el-Mandeb Strait, another major oil chokepoint.

Meanwhile, according to Iranian media Tasnim, in response to Trump’s threat, Iran has said that it will retaliate against infrastructure in the region if the U.S strikes its bridges or power plants. In a major escalation in the U.S.-Iran war, Iran recently struck Amazon’s data center in Bahrain.

Odds Of A Rate Hike On The Rise Again

The odds of a Fed rate hike are again rising following the latest developments in the U.S.-Iran war. Data from the top crypto prediction platform Polymarket shows a 65% chance that the Fed will hike rates this year.

This comes just ahead of the July 29 FOMC meeting, where the Fed is still expected to hold rates steady for now. The latest CPI and PPI inflation data had come in cooler than expected, which made market participants price out a hike at the upcoming meeting.

However, with the U.S.-Iran war resuming, there are expectations that inflation could remain elevated for a while, which could force the Fed to hike rates. Bitcoin is in the red today as crypto traders factor in these possibilities. The leading crypto is currently trading at around $65,700, down over 1%, according to TradingView data.