News wrap @ morning, 16 January 2020

Amid rising tensions, Iran’s navy has issued a stark warning of “lethal” retaliation, signaling a dangerous new phase in the conflict. Iranian Navy chief Shahram Irani that revenge for the sinking of the IRIS Dena is inevitable and will come from “unseen directions.” Tehran alleges the vessel was destroyed by a US submarine, escalating hostilities with the United States. Iranian forces have vowed continued operations until what they call a “final victory,” raising fears of surprise attacks on naval assets and a broader regional escalation.