Trump vows retaliation after Iranian strikes on US bases
President Donald Trump said on Monday that sanctions against Iran were 'kicking in really strongly' and pledged to respond to Iran's attack on American forces in Jordan. The US and Iran traded fire for the first time in more than a month, with Jordan intercepting eight missiles. US Treasury Secretary Scott Bessent warned that those engaging with Tehran risked being cut off from the dollar-based financial system.
Why it matters: This escalation underscores the theme of economic statecraft, as the US leverages sanctions and financial isolation to counter Iranian military actions.