On Saturday, Trump warned that he would “destroy” Iranian power plants if Tehran did not fully reopen the Strait of Hormuz within 48 hours. The threat escalated suddenly, just a day after he suggested that the war – now in its fourth week – was “over”.
Iran responded by threatening to target US infrastructure in the Gulf, including energy facilities, if Trump acted on his warning. Meanwhile, US marines and heavy landing ships are moving towards the area.
The conflict, launched by the US and Israel on February 28, has killed more than 2,000 people, disrupted markets, sent fuel prices soaring, raised fears of global inflation and strained post-war Western alliances.
IG Markets analyst Tony Sycamore said, “President Trump’s ultimatum has created a 48-hour time bomb for the markets. If not rescinded, we could see a Black Monday scenario with declining equities and rising oil prices.”
Tehran could target Gulf energy hubs in Saudi Arabia, the United Arab Emirates and Qatar, which would increase energy costs and escalate the regional crisis. Oil prices have already hit a four-year high following a series of attacks on Iranian and neighboring energy facilities.
The Strait of Hormuz, which carries about a fifth of global oil and LNG supplies, has been effectively closed, leading to the biggest rise in gas prices in Europe in years. Some ships, including Indian and Pakistani ships, have negotiated the route under Tehran-coordinated security arrangements.
Trump’s strategy aims to put pressure on Tehran economically and politically without destroying oil fields, which could damage long-term global supplies. Iran has warned that any attack on its energy infrastructure could target all US energy, IT and desalination facilities in the region.
Tehran fired long-range missiles for the first time on Saturday, signaling its retaliation could extend beyond the Middle East. An attack occurred near Israel’s Dimona nuclear reactor, while ballistic missiles targeted the US-British base at Diego Garcia in the Indian Ocean.
Israeli officials said Iran’s missile range included European capitals including Berlin, Paris and Rome. In response, Israel attacked Tehran a few hours after Iranian attacks on southern Israel.
Trump’s changing messages have left NATO allies uncertain about the partnership. While Japan is considering supporting minesweepers if an armistice takes place, most allies are hesitant to become involved in a war started without consultation.
key points
- Trump threatened to destroy Iranian power plants if the Strait of Hormuz was not reopened within 48 hours.
- Iran has warned that it will target US energy, IT and desalination infrastructure in retaliation.
- The conflict killed more than 2,000 people and disrupted global energy markets, causing oil and gas prices to rise sharply.
- Tehran fired long-range missiles, hinting at possible attacks beyond the Middle East.
- Mixed US signals and NATO reluctance have left allies hesitant; Trump is facing increasing domestic political pressure.
