Iran has warned of a faster and more painful military response to any further US attacks as sanctions and an oil blockade intensify pressure on its economy. Renewed tensions around the Strait of Hormuz have pushed Brent crude prices above $96.

Market Reaction

US equity futures traded lower late in the day as oil prices rose. Dow futures fell 147 points, or 0.28%, to 53,293.00. S&P 500 futures slipped 2 points, or 0.03%, to 7,720.00. Nasdaq 100 futures rose 37 points, or 0.13%, to 29,602.25 as of around 10:49 pm EDT.

In commodities, WTI crude oil rose 0.59% to $92.02 per barrel. Brent crude advanced 0.53% to $96.79 per barrel. Natural gas futures fell 1.78% to $2.922 per MMBtu. The US dollar index stood at 99.196, up 0.04% as of around 8:30 am IST.

Asian markets traded higher. South Korea’s KOSPI rose 3.11% to 6,895.43. Japan’s Nikkei 225 climbed 2.21% to 66,460.11.

Escalating Tensions

Iranian Parliament Speaker Mohammad Baqer Qalibaf said Sunday that Tehran would respond more aggressively to any attack on its interests and security. He stated that any attack would receive a faster, heavier and more painful response.

The warning followed renewed hostilities after a period of relative calm. US Central Command said it struck three Iranian tankers Saturday after Iran’s Islamic Revolutionary Guard Corps launched ballistic missiles at two US Navy ships. Iran also plans to establish a restricted zone outside the Strait of Hormuz, with vessels entering the area potentially facing sanctions.

Economic Pressure

Washington’s sanctions and blockade are disrupting oil exports and contributing to inflation, currency volatility and unemployment in Iran. Economy Minister Ali Madanizadeh said Tehran would pursue domestic reforms rather than change course due to US pressure.

President Donald Trump is reportedly weighing a declaration that the Iran war is over while maintaining that continued economic pressure could push Tehran to dismantle its nuclear program or contribute to the collapse of the regime. Vice President JD Vance suggested China may be willing to support US efforts to economically isolate Iran despite policy differences between Washington and Beijing.

Iran's Security Council Secretary Rezaei declared that Iran has every right to distrust America, defending the country's skepticism even as it engages in diplomacy and negotiations.

Iran's stance on US credibility

Rezaei stated that while Iran participates in diplomatic processes and negotiations, it retains the right to remain skeptical of American intentions. He directly rejected US characterisations of Iran as untrustworthy, calling such claims a lie, according to IRIB News.

Context of the remarks

The remarks reflect the broader tension framing Iran-US diplomatic engagement. Rezaei's position, as conveyed through IRIB News, presents Iran's posture as one of conditional engagement, where participation in talks does not equate to unconditional trust in the opposing party.