The United States and Iran are exchanging military strikes in the Persian Gulf and Jordan, escalating tensions in the region. Consequently, oil prices are rising sharply, nearing $100 a barrel amid market anxieties. Tehran has warned that the era of "measured responses" is over, indicating a potential escalation of hostilities. Washington is simultaneously adopting a more assertive stance. The exchange of fire has rattled global markets, raising concerns about potential disruptions to oil supply. This conflict threatens wider regional instability and could have significant economic repercussions. Further escalation appears increasingly likely as both nations harden their positions.