Iran-US conflict escalates: Trump warns of 'not-so-nice' end, Vance demands enrichment cuts as oil blockade hits Iran economy

Oil prices surged and equities declined on Wednesday, as fresh fears regarding Middle East supplies surfaced following a warning that Iran may be intensifying attacks in the Strait of Hormuz. Investor interest was diverted from a record-breaking day on Wall Street, where the Nasdaq and S&P 500 gained due to a resurgence in AI-related investments, with Nvidia leading the surge towards a $6 trillion market capitalization.

Recent reports suggested that Middle East exports, excluding Iran, were rebounding towards pre-war levels, which temporarily lifted the market. However, both contracts rebounded on Tuesday and continued to rise in early Asian trade, following the revelation that Tehran had escalated strikes on tankers in the critical Strait of Hormuz.

Saudi-led coalition members announced on Wednesday that they had successfully intercepted and destroyed a ballistic missile launched by the Houthi militia north of Riyadh. The Saudi-led coalition's spokesman, Major General Turki al-Maliki, stated that the missile was intercepted and destroyed in the area north of Riyadh.

Central Bank of Iran (CBI) Governor Abdolnaser Hemmati dismissed US predictions that Iran's economy would collapse, describing the forecasts as "delusional" and assured the public that Tehran possesses sufficient foreign currency reserves to meet essential needs. Hemmati attributed Washington's economic forecasts to an "economic war" targeting Iran's foreign exchange market and financial system, asserting that the CBI has legal mechanisms in place to stabilize the market.

US Treasury Secretary Scott Bessent publicly questioned Iran's newly appointed oil minister after tanker-tracking data revealed that Iran had not loaded a single barrel of crude onto a vessel since late August, highlighting the impact of the US-led naval blockade on Tehran's primary source of revenue. On October 6, Bessent questioned the role of Iran's new oil minister in a tweet, stating, "Iran has a new oil minister.

Considering Iran has not loaded a single barrel of crude onto a vessel since August 25th, what is the oil minister managing?" President Masoud Pezeshkian had recently accepted the resignation of Oil Minister Mohsen Paknejad and appointed Hamid Bovard as the acting minister.

In a press conference before boarding Marine One at the White House, US President Donald Trump expressed his frustration with the ongoing conflict with Tehran, stating that his biggest problem is that "no one knows who the hell is running Iran after successive tiers of Iranian leadership have been eliminated." Trump claimed that Iran's leaders were gone, their second group of leaders were gone, and the biggest issue was the lack of clarity regarding who was currently in charge of the country.

In a subsequent interview at an Anduril Industries event in Maryland, Trump stated that the US must "finish up" the war with Iran and hinted at the possibility of employing a more aggressive approach to achieve victory, suggesting that the conflict could conclude either through a diplomatic settlement or through a more forceful military campaign.