United States President Donald Trump has vowed to retaliate against Iran after Tehran launched attacks targeting U.S. forces in Jordan and the United Arab Emirates, marking the first direct exchange of strikes between the two sides in several weeks.
Trump told Fox News on Monday that the U.S. would "hit them hard" in response to the Iranian attacks, while warning that further military action against Iran remained under consideration.
The latest escalation followed U.S. strikes on Sunday against what the American military said were Iranian rocket launchers and sea drones on Larak Island in the Strait of Hormuz.
Iran's Islamic Revolutionary Guard Corps said it subsequently targeted U.S. military bases in Jordan and the United Arab Emirates (UAE).
Jordanian and UAE authorities said the Iranian missiles and drone were intercepted or fell without causing damage.
Iranian officials said two people were killed in the U.S. strikes.
Trump also dismissed concerns that a prolonged military campaign in the Middle East could weaken Washington's ability to respond to threats elsewhere, describing the conflict as "a relatively little war" for the U.S.
"They're a failed nation," Trump said of Iran, while adding that the U.S. could still launch further attacks. "That doesn't mean we won't smack them. We'll see what happens."
The latest flare-up comes as the six-month conflict enters a new phase after the Trump administration last week shifted its strategy towards what it described as "economic warfare".
Washington has imposed additional sanctions on Tehran in an effort to increase pressure on Iran and break the prolonged stalemate.
The renewed fighting has further raised tensions around the Strait of Hormuz, a key global energy transit route, while investors remain alert to the potential impact of an extended conflict on oil supplies and inflation.
