Trump Saber-Rattling Spurs Concern Prolonged War Will Hurt Growth

It’s getting hard to keep up with Donald Trump’s threats against Iran as the war enters a dangerous new phase.

The financial markets took the threat of a prolonged war seriously as US and Israeli forces pressed ahead with attacks on Iran and the Houthis joined the fray. A gauge of Asian shares fell and sovereign bonds around the world rose amid concern that higher crude oil prices will weigh on economic growth.

The US leader said in an interview with the Financial Times that he wants to “take the oil in Iran” and could seize the export hub of Kharg Island, while he told the Wall Street Journal that he’s weighing a military operation to extract uranium from Iran. All this as additional US troops arrived in the Middle East, fanning fears of a risky ground attack as the war entered its second month.