Trump threatens 'major military punishment' against Iran after Houthis say they attacked two Saudi oil tankers in Red Sea

The Middle East conflict intensified after the Houthis said they had attacked two Saudi oil tankers in the Red Sea, helping drive Brent crude above $100 a barrel. Reuters could not immediately confirm the reported attack on one of the two vessels. President Donald Trump threatened “major military punishment” against Iran and the Houthis if the group attacks again. In a separate warning, he said the U.S. would destroy one Iranian bridge or power plant each time Iran fires at a ship in the Strait of Hormuz. The Independent, citing Axios, reported that Qatar, Pakistan, and Egypt had proposed a 10-day ceasefire between the United States and Iran.

U.S. strikes on Iran

• ▪Iranian state media reported that U.S. missiles struck locations near the western Iranian cities of Ahvaz, Ramshir, and Andimeshk, and that two people were killed in a U.S. missile strike in Shalamcheh.
• ▪The United States military conducted its 12th consecutive night of airstrikes against Iran on July 22, 2026, to degrade Iran's ability to threaten commercial shipping.
• ▪The United States military said it used B-1 long-range bombers during its latest round of strikes on Iran.

Strait of Hormuz control dispute

• ▪Iran claims the right to manage traffic and potentially charge tolls in the Strait of Hormuz, which was previously toll-free.
• ▪United States Secretary of State Marco Rubio stated that allowing Iran to control the Strait of Hormuz and charge tolls would set a dangerous global precedent.

Oil price surge effects

• ▪The average price of gasoline in the United States rose to $4.09 per gallon amid the escalating Middle East conflict.
• ▪Brent crude oil prices surged past $100 a barrel on July 23, 2026, for the first time since May, following reported Houthi attacks on Saudi tankers.
• ▪The cost of war-risk insurance for shipping goods through the southern Red Sea doubled for some companies on July 23, 2026.

Civilian infrastructure targeting escalation

• ▪President Donald Trump warned that the United States will destroy one Iranian bridge or power plant for every ship shot at in the Strait of Hormuz.
• ▪Iranian Foreign Minister Seyed Abbas Araghchi announced an 'eye for an eye' defense doctrine, warning that any aggression against Iranian infrastructure will compel a decisive response.
• ▪AP reported that Iran had targeted energy infrastructure and desalination plants in neighboring Gulf countries. Kuwaiti military officials separately said their air defenses were confronting hostile drones following what they described as Iranian aggression.

Regional diplomatic mediation efforts

• ▪Iranian Interior Minister Eskandar Momeni visited Pakistan to seek a revival of diplomatic negotiations with the United States.
• ▪The Independent, citing Axios, reported that Qatar, Pakistan, and Egypt had proposed a 10-day ceasefire between the United States and Iran to prevent the conflict from spreading into a wider regional war.

Pickaxe Mountain nuclear site

• ▪President Donald Trump signaled that United States forces could target Pickaxe Mountain, an under-construction Iranian underground nuclear enrichment site.
• ▪The Pickaxe Mountain site lies on the south side of Iran's Natanz nuclear enrichment site, which was previously bombed by the United States in 2025.

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