President Donald Trump warned Iran against further activity at the suspected Pickaxe Mountain nuclear site after satellite imagery showed a construction surge there. The warning follows a wave of attacks on tankers near the Strait of Hormuz that pushed oil prices above $100 a barrel.
Trump told reporters at the midterm Republican convention that Iran should not escalate activity at Pickaxe Mountain, a suspected nuclear site near the damaged Natanz enrichment facility. He said the U.S. would respond with force if Tehran continued.
According to CNBC: "not to get cute because we will have to hit them very hard" was how Trump described the consequences of further Iranian action at the site.
Satellite images show construction surge
An analysis of satellite imagery by the Center for Strategic and International Studies, published Wednesday, found more road activity at Pickaxe Mountain in 2026 than at any point in the site's history, along with a clear surge in construction. The site sits two kilometers from Iran's Natanz uranium facility, which U.S. forces struck in June 2025 along with Fordow and Isfahan. CSIS said it could not confirm or deny claims that Iran moved centrifuges into the site, but called the activity suspicious.
Tanker attacks escalate near Hormuz
Iran said it fired ballistic missiles at a U.S. military base in Jordan and attacked 10 ships near the Strait of Hormuz, a waterway that typically carries around 20% of the world's oil traffic. Earlier in the week, U.S. Central Command forces said they destroyed five Iranian oil tankers after Iran's Revolutionary Guard Corps targeted a U.S. Navy warship with ballistic missiles twice in two days.
Oil tops $100 as traders weigh supply risk
The escalation, layered on top of fighting between Saudi Arabia and Iran-backed Houthis in Yemen, has put crude oil markets on alert for further supply disruptions. Brent crude futures traded 0.9% higher at $102.10 a barrel on Thursday morning, while WTI crude last traded up 1% at $97.01.
ING strategists said Chinese buying behaviour will largely determine whether the rally has follow-through or fades amid this geopolitical risk. Trump added that he does not expect the war to end before November's midterm elections, and that some short-term economic pain for U.S. consumers is worth preventing Iran from developing nuclear weapons.
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