United States President Donald Trump is considering an attack on Iran, a country that controls the world's third-largest oil reserves and one of the world's most important shipping lanes. The consequences for oil prices and Americans' wallets could be immediate and severe.
The United States has beefed up its military presence in the Middle East in recent weeks, and Trump has suggested that a U.S. attack could be possible. That prospect has already sent oil prices soaring, according to a CNN analysis.
"Maybe we should go a step further, maybe not," Trump said.
"We can make a deal. You'll find out within the next 10 days or so."
Brent, the international benchmark, had gained 7% since Tuesday and crossed $70 a barrel - the first time since July, shortly after the previous US attack on Iran. US crude has risen by $10 in the past month.
Iran held annual military exercises with Russia on Thursday, as a second US aircraft carrier moved even closer to the region.
The military exercises held in the Gulf of Oman and the Indian Ocean aimed to improve operational coordination, as well as exchange of military experiences, as reported by the Iranian state news agency Islamic Republic News Agency (IRNA).
The development comes as US President Donald Trump gave Iran 10-15 days to reach a deal. He warned that "really bad things" would happen if a deal was not reached.
"I think 10-15 days is enough time to achieve something," the US president said.
Trump cited the US airstrikes in June, saying Iran's nuclear capability had been destroyed. Speaking from his presidential plane, the White House chief added that they may be forced to take a further step, but that it would likely take another 10 days to learn what would happen.
While there has been some progress in talks with Iran, the country has refused to include Israel's demands to reduce its missile program and support for armed groups in the deal. Negotiations in recent weeks have produced no results, suggesting that one or both sides are seeking to buy time for final preparations for war.
In a letter to UN Secretary-General António Guterres, Tehran said it would not start any war, but that in the event of military aggression it would respond decisively and proportionately.
Meanwhile, Israel is also preparing for a possible missile attack from Iran. "We are ready for any scenario, but if it attacks Israel, Iran will receive a response it cannot even imagine," warned Benjamin Netanyahu.
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