Former President Donald Trump said the United States would retaliate vigorously against Iran as hostilities involving the U.S., Israel and Iran resume after a stalemate, lifting oil prices on supply-disruption fears and cutting prediction-market odds of a U.S.-Iran deal in 2026. The military escalation sits atop Iran’s deepening domestic economic crisis: President Masoud Pezeshkian has acknowledged that U.S. sanctions raised prices and cut trade, while Supreme Leader Ayatollah Mojtaba Khamenei urged the government to tackle livelihood pressures amid fuel queues, inflation above 80%, food-price increases of 100%, a 25%-35% drop in oil trade, more than 1 million jobs lost by late May and an IMF-projected 6.1% contraction. U.S. forces have cleared Iranian sea mines and reopened Strait of Hormuz shipping lanes after Iran’s July 28, 2026 ballistic-missile attack on U.S. forces in Jordan was intercepted without reported casualties. Markets are watching for further U.S., Iranian or Israeli military moves and any supply constraints that could push crude toward new highs.