Headlines of this nature carry significant potential to drive a sharp risk off move, with oil likely to spike higher on fears of supply disruption through the Strait of Hormuz and broader regional escalation. Safe haven flows into the dollar, yen and gold would typically follow, while equities and other risk assets could come under pressure. Traders will be watching for confirmation of any actual strikes and for Iran's response, given the explicit threat to target US interests if action is taken. Volatility across energy and equity markets is likely to remain elevated through the Asia session and beyond.
US defense secretary Hegseth says CENTCOM will hit Iran hard tonight, targeting key facilities. Hegseth's comments can, in some way at least, be read as an attempt to pile the pressure on Iranian negotiators. So far, though, Iran's Tasnim says forces are prepared and will respond heavily.
Summary:
- US defense secretary Hegseth said CENTCOM will be busy tonight and that the US will hit Iran hard, targeting key facilities
- Hegseth described the planned strikes as strong and clear, framing them as aimed at setting terms for a deal rather than restarting war
- Hegseth said most Iranian missiles miss their targets
- Iran's Tasnim news agency cited a military source saying Iranian armed forces are fully prepared tonight
- The same source said any US aggression would once again face heavy responses and that Iran would target new US interests if the Americans take action
US defense secretary Pete Hegseth said on Tuesday that American forces are preparing for significant military action against Iran, warning that Central Command would be busy tonight and that the United States plans to hit Iran hard.
Hegseth said strikes would target key facilities inside Iran and described the planned action as strong and clear. He framed the operation not as an effort to restart the broader conflict but as a means of setting the terms for a future deal, saying Iran has had a chance to reach an agreement but has not been willing to take it. He also claimed that most Iranian missiles fired in previous exchanges have missed their intended targets.
Iran responded swiftly through state media. Tasnim news agency cited a military source as saying Iranian armed forces are fully prepared for the night ahead. The source warned that any aggressive action by the United States would be met once again with heavy responses, and said Iran would target new American interests in the region if Washington proceeds with strikes.
The exchange marks a sharp escalation in rhetoric between Washington and Tehran, raising the prospect of direct military confrontation in the hours ahead and heightening concerns over regional stability and energy supply routes through the Gulf.
