US President Donald Trump has issued a stark ultimatum to Iran, demanding that a deal with Oman regarding the Strait of Hormuz be agreed upon by Tuesday or face "devastating air strikes." The threat, reported by Moneyweb citing Bloomberg, marks a significant escalation in rhetoric as Washington seeks to resolve the ongoing conflict and secure the vital waterway.
Trump told reporters he wanted to give Tehran "every last chance before decapitation," signaling that military action remains on the table if diplomatic channels fail to produce an immediate agreement.
The Strait of Hormuz, through which roughly a fifth of the world's oil consumption passes, has been a focal point of geopolitical tension and shipping risk for months.
Markets are likely to react to the heightened uncertainty, with Brent crude and tanker equities sensitive to any news of renewed hostilities or transit disruptions.
The prospect of a forced closure or attack on shipping lanes could trigger a sharp spike in energy prices and freight rates, while a successful deal would likely see risk premiums unwind.
This development follows a series of conflicting reports regarding the status of US-Iran peace talks.