Iran threatens to expand hostilities if US resumes attacks

(Sharecast News) - Iran has threatened to attack countries outside of the Gulf if the US and Israel resume military campaigns against the Middle East state.

In a statement carried on state media on Wednesday, the powerful Islamic Revolutionary Guard Corps said: "If aggression against Iran is repeated, the promised regional war will extend beyond the region this time, and our crushing blows will bring you ruin in places you cannot imagine.

"We are men of war and you will see our power on the battlefield, not in hollow statements and virtual pages."

The threat comes just days after Donald Trump said on Monday, and repeated on Tuesday, that he had been an hour away from ordering a new bombing campaign against Tehran. He claimed he had been persuaded against taking action by other Middle East countries.

He also told US reporters on Tuesday that Tehran was eager to reach an agreement and that the conflict would end "very quickly". Vice president JD Vance later said neither country wanted the military campaign to restart and that negotiations were in a "pretty good" place.

A fragile ceasefire between the US and Iran was agreed in April and was recently extended. However, a permanent peace deal remains elusive, despite repeated claims by the White House to the contrary, and the conflict continues to drag on.

It was widely reported earlier this week that Tehran had submitted a revised peace proposal to Washington via Islamabad, which is acting as a mediator. However, many of its demands - including lifting sanctions, control of the vital Strait of Hormuz and compensation for war damage - have all been previously rejected by the US.

Russ Mould, AJ Bell investment director, said: "A lasting solution to the Iran crisis remains elusive."

As at noon BST, benchmark Brent crude was trading at $108.23 a barrel while West Texas Intermediate was at $101.32.