US Central Command stated that it struck two rocket launchers on Larak Island, asserting the action was intended to prevent Iran from deploying sea mines in the Strait of Hormuz. In response, Iran's state media reported that the Revolutionary Guard Corps retaliated with ballistic missile attacks on US-operated airbases in Jordan, claiming significant damage to technical infrastructure.

US Treasury Secretary Scott Bessent stated that the administration plans to impose new sanctions on a bank this week to pressure Iran, while acknowledging that hostilities flared on Sunday after US forces struck Iranian rocket launchers in the Strait of Hormuz.

Although officials have signaled a strategic shift toward economic measures to isolate Iran, the administration continues to rely primarily on warnings rather than new restrictions on third-party trading partners, with Bessent indicating he will discuss these issues with Chinese counterparts at the upcoming G20 meetings.

U.S. forces struck rocket launchers in the Strait of Hormuz on Sunday, an action described by U.S. officials as a response to observed preparations by the Revolutionary Guard Corps to deploy sea mines, following a period of reduced military activity.

Iranian state media reported casualties resulting from the incident, which occurred days after the U.S. administration announced a strategic shift toward economic sanctions rather than direct military engagement.

Peter Tchir of Academy Securities noted that the recent speech by Kevin Warsh, who mentioned "hike" three times in a non-monetary context, provided limited new information. Consequently, bond yields rose while stocks declined, with the author suggesting that afternoon selling on long-term Treasuries may have been driven by hedging for upcoming corporate bond issuances.