Trump issues Hormuz ultimatum, threatens to ‘obliterate’ Iran’s power plants
The US president demands Tehran reopen the shipping lane within 48 hours, making the deadline a ‘ticking time bomb’ for markets
US President Donald Trump and Iran threatened to escalate their war, targeting energy and fuel facilities in the Gulf, which could again roil global energy and financial markets and deepen a regional crisis.
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 talked about “winding down” the war, now in its fourth week.
Iran warned on Sunday it would target US infrastructure, including energy facilities in the Gulf, if Trump carried out his threat, which he made as US Marines and heavy landing craft continue to head to the region.
More than 2,000 people have been killed during the war the US and Israel launched on February 28, which has upended markets, spiked fuel costs, fuelled global inflation fears and convulsed the post-war Western alliance.
‘Ticking time bomb’ for markets
“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.