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 comments, reported by Bloomberg, mark a significant escalation in rhetoric as Washington seeks to resolve the ongoing conflict and secure the vital shipping corridor.
Trump told reporters he is providing "every last chance" before considering military decapitation strikes, signaling that the window for a diplomatic solution is narrowing.
The threat comes amid heightened volatility in global energy markets, where the Strait of Hormuz remains a critical chokepoint for a significant portion of the world's oil and gas supply.
Markets are likely to react to the increased geopolitical risk, with Brent crude and shipping equities sensitive to any signs of renewed disruption.
The prospect of air strikes could trigger a risk premium in energy prices, while a successful deal would likely see a sharp reversal in sentiment.
Traders are closely monitoring the situation for any immediate impact on tanker routes and insurance rates.