Trump threatens 1,000 missiles at Iran, oil and gold surge

Donald Trump said 1,000 missiles are already aimed at Iran, threatening thousands more if he is assassinated and vowing to destroy the country within a year.

Donald Trump said 1,000 missiles are trained on Iran and threatened thousands more would be launched if he is assassinated, vowing to destroy the country within a year in the sharpest escalation of the seven-month conflict.

"Orders have been given. The U.S. military is ready and capable of completely destroying and eliminating Iran within one year, with extensions as needed," Trump said July 10, according to Xinhua.

The threat sent crude oil futures higher on concerns over supply disruptions through the Strait of Hormuz, which handles about 21 percent of global oil trade. Gold rose as investors sought havens, while equity index futures declined and the VIX, the Cboe's volatility gauge, signaled elevated risk pricing.

The escalation threatens to unravel an interim ceasefire that had tempered the conflict since February, when the U.S. launched its military campaign after breaking off nuclear talks. Oil prices had retreated from wartime highs of $120 a barrel but now face renewed upward pressure as Iran asserts exclusive control over the Strait of Hormuz.

The confrontation has deepened since the Feb. 28 start of the war, which killed Iran's longtime leader, Ayatollah Ali Khamenei, in its opening stages. The conflict has since drawn in Gulf Arab states, with Iran launching attacks targeting Bahrain, Jordan, Kuwait and Qatar in response to U.S. strikes.

Iran's U.N. ambassador, Amir Saeid Iravani, said any activity in the Strait of Hormuz "rests exclusively with Iran," rejecting U.S. demands that Tehran publicly declare the waterway open. About a fifth of all traded oil and natural gas passed through the strait before the war, and Iran has said vessels should begin paying fees to Tehran.

Oil Risk Premium Returns to $120 Highs

The last time oil traded at $120 a barrel was during the initial weeks of the conflict in February and March, before the interim ceasefire brought prices down. Brent crude has since fluctuated as traders weighed supply risks against the potential for a diplomatic resolution. The renewed threat of a full-scale U.S. campaign to destroy Iran's military infrastructure could push prices back toward those levels.

U.S. officials said any nuclear deal with Iran would require Tehran to turn over its stockpile of highly enriched uranium, believed to be buried after U.S. strikes last summer. They also said Trump is giving negotiators limited time to reach a deal, with military options available if talks collapse.

The VIX climbed as the threat of a broader Middle East war reignited demand for hedges. The U.S. dollar strengthened against emerging-market currencies, while defense sector stocks rallied on expectations of increased military spending. Gold extended gains as investors priced in a prolonged period of geopolitical uncertainty.

Pakistani Prime Minister Shehbaz Sharif spoke separately with Iranian President Masoud Pezeshkian and Qatar's ruling emir, Sheikh Tamim bin Hamad Al Thani, urging restraint. Turkish Foreign Minister Hakan Fidan said he believed a solution could be reached this weekend between Iran and Oman over the strait's status.

This article is for informational purposes only and does not constitute investment advice.