U.S. President Donald Trump has stated he is considering launching a "massive attack" on Iran to force the country back to the negotiating table, a move that could further escalate energy prices already weighing on the global economy.

In an interview, Trump said he is "close to making a decision" and that the scale of the strikes would be "unprecedented." The report quoted him as saying Iran is not ready to reach a deal, adding, "They haven't suffered enough." These remarks highlight Trump's dilemma, as the recent resumption of hostilities led to the collapse of a temporary ceasefire and the near-blockade of the Strait of Hormuz.

On Thursday, Trump warned on Truth Social that Iran and its backed Houthi rebels in Yemen would face "major military punishment" if they attack commercial vessels. This week, the Houthis claimed responsibility for an attack on a Saudi oil tanker, opening a new front in a conflict that has already pushed oil prices above $100 per barrel and U.S. retail gasoline prices above $4 per gallon.

According to reports citing Iranian and Iraqi officials, Iraq's prime minister brought Trump's ceasefire proposal to Iran, but Tehran rejected it on Thursday, marking another setback for mediation efforts. The report noted that the specific details of the plan remain unclear.

The U.S. Central Command stated on Thursday it had launched airstrikes for the 13th consecutive night, aimed at weakening Iran's ability to attack commercial vessels in the Strait of Hormuz. Hours before the airstrikes, Trump warned that "from this moment on, any damage to ships, cargo, or related matters will be paid for by Iranian funds held and controlled by the United States." Approximately $2 billion in Iranian funds are frozen within the U.S., with a larger amount held in other countries, unable to be transferred due to U.S. sanctions—estimates range from $24 billion to over $100 billion.

Iranian Foreign Minister Abbas Araghchi posted on X, stating that "seizing the assets of other countries to pay for unrelated future claims is a dangerous precedent." Since the joint U.S.-Israeli attack on Iran in February, the conflict has entered a new phase of escalation after the ceasefire broke down last month. While the intensity of the fighting is not at its peak, Iran has threatened to attack regional infrastructure, including energy facilities, if Trump follows through on his threat to "destroy a bridge or power plant every time Iran attacks shipping in Hormuz."

The Strait of Hormuz, which carried about one-fifth of the global energy supply before the war, now sees a sharply reduced flow of traffic. The Houthis' actions this week have also threatened the Bab el-Mandeb Strait, another maritime chokepoint, causing some ships to reroute. However, two Chinese tankers loaded with Saudi crude oil have passed through the strait and exited the Red Sea.

As of press time, Brent crude oil was trading at $99.65 per barrel, down from a low of $70.14 on July 2. Gold continued its decline to $4,030.10 per ounce, as markets anticipate the Federal Reserve may tighten monetary policy to curb inflation.

Last month, Trump agreed to a temporary ceasefire, citing the risk of a global economic collapse. Facing growing political pressure ahead of the November midterm elections, Republicans are struggling to maintain control of Congress. Polls show that the public does not support the war. The House of Representatives passed a second resolution on Thursday calling on Trump to end the war, but the resolution is largely symbolic.

Iran's state television reported that an attack on a passenger terminal at the Shalamcheh border crossing between Iran and Iraq killed two people. Meanwhile, Iran continues to attack U.S. bases in the region, including targets in Kuwait and Jordan. The Houthi rebels, as part of Iran's "Axis of Resistance," control large areas of northern Yemen, including the capital Sanaa and the Red Sea port of Hodeidah. Since Israel launched its war on Hamas in Gaza in 2023, the group has frequently harassed Red Sea shipping with drones and missiles. Trump ordered airstrikes against the group last year, which were halted after a partial ceasefire was reached.