Washington, United States. U.S. President Donald Trump and Iran exchanged threats to escalate the war by targeting energy and fuel facilities in the Gulf, raising concerns about renewed turmoil in global energy and financial markets.
Trump issued an ultimatum on reopening the Strait of Hormuz, while Iran warned of retaliation against U.S. infrastructure as U.S. Marines and heavy landing craft continued moving to the region.
Trump ultimatum on Strait of Hormuz
Trump on Saturday threatened to “obliterate” Iran’s power plants if Tehran did not fully reopen the Strait of Hormuz within 48 hours, a significant escalation barely a day after he spoke about “winding down” the war, now in its fourth week.
“If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!” Trump posted on social media around 7:45 p.m. EDT (2345 GMT) on Saturday.
Iran threat of retaliation and shipping position
Iran warned on Sunday it would target U.S. infrastructure, including energy facilities in the Gulf, if Trump carried out his threat.
Hours later, Iran’s representative to the U.N. maritime agency said the strait remained open to all shipping except vessels linked to “Iran’s enemies”.
Ali Mousavi, Tehran’s representative to the International Maritime Organisation, said passage through the narrow waterway was possible by coordinating security and safety arrangements with Tehran.
War toll and market impact
More than 2,000 people have been killed during the war the U.S. and Israel launched on February 28, which has upended markets, spiked fuel costs, fuelled global inflation fears and convulsed the postwar Western alliance.
“President Trump’s threat has now placed a 48-hour ticking time bomb of elevated uncertainty over markets. If the ultimatum is not walked back, we will likely see a Black Monday reopening of global equity markets in free fall and oil prices spiking significantly higher,” said IG market analyst Tony Sycamore.
Sycamore said Tehran would likely target Gulf energy facilities in Saudi Arabia, the United Arab Emirates and Qatar, which “would deepen and prolong the pain of higher energy prices and drag the conflict into a broader regional crisis”.
Energy disruptions and price moves
Oil prices jumped on Friday and settled at their highest in nearly four years, after Iraq declared force majeure on all oilfields developed by foreign firms, Israel attacked a major gas field in Iran and Tehran responded with strikes on neighbours, Saudi Arabia, Qatar and Kuwait.
Iranian attacks have effectively closed the Strait of Hormuz, a narrow choke point that carries around a fifth of global oil and liquefied natural gas supplies, causing the worst oil crisis since the 1970s. Its near-closure sent European gas prices surging as much as 35% last week.
What impact do you expect further disruptions in the Strait of Hormuz to have on energy prices where you live?
