US President Donald Trump warned on Monday that Iran’s energy infrastructure would be “obliterated” if Tehran refuses to reopen the Strait of Hormuz. This follows Iran’s dismissal of US peace proposals as “unrealistic,” continuing missile strikes on Israel.
Israel’s military intercepted two drones launched from Yemen, just days after Iran-backed Houthi forces entered the conflict. Fresh rocket fire from Hezbollah in Lebanon signalled a growing regional conflict.
The month-long war, ignited by US-Israeli strikes on February 28, has spread across the Middle East, killing thousands—many civilians in Iran and Lebanon—and severely disrupting global energy supplies.
Iran has effectively blocked the Strait of Hormuz, a critical chokepoint for one-fifth of global oil and LNG shipments. Iranian Foreign Ministry spokesperson Esmaeil Baghaei dismissed US proposals, conveyed through intermediaries from Pakistan, Egypt, Saudi Arabia, and Turkey, calling them “unrealistic and excessive.”
“We are under military aggression. Our efforts are focused on self-defense,” Baghaei stated.
Trump, in turn, reiterated threats, saying the US is in contact with a “more reasonable regime” in Iran and warned that desalination plants supplying clean water could be targeted.
A Pakistani official involved in the mediation said direct US-Iran talks this week seemed unlikely, but efforts continue.
Trump floats seizing Iran’s oil hub
Trump also suggested seizing Iran’s key oil export terminal at Kharg Island, despite domestic criticism. In an interview with The Financial Times, he stated: “Maybe we take Kharg Island, maybe we don’t. We have a lot of options. It would also mean we’d have to be there for a while.”
He compared this approach to US policy in Venezuela, where Washington has aimed for long-term control of the oil sector after President Nicolás Maduro’s removal.
The US has already deployed Marines to the Middle East, with additional troop deployments, including units from the 82nd Airborne Division, as the war enters its fifth week.
Oil prices surge amid conflict
Oil markets responded sharply, with Brent crude rising 2% to $114.85 per barrel, on track for a record monthly surge of nearly 60%, surpassing gains from Iraq’s 1990 invasion of Kuwait. US crude rose 1.5% to $101.16.
Global equities remained volatile, with Asian markets falling due to supply concerns. Japan’s Nikkei index dropped 2.8%, while European stocks saw a modest recovery, and Wall Street futures pointed to limited gains. Investors fear a prolonged Gulf conflict could push inflation higher and push major economies into recession.
Sisi urges Trump to halt war, warns of $200 oil
Egyptian President Abdel Fattah el-Sisi urged Trump to end the conflict, warning of global consequences. “I tell President Trump: nobody can stop the war in our region but you,” Sisi said at an energy conference in Cairo. “Please help us stop the war.”
He warned oil prices could hit $200 per barrel and cautioned that disruptions in fertilizer supplies could trigger a global food crisis, severely impacting developing economies.
Spain blocks US war flights
Spain closed its airspace to US military aircraft involved in the Iran conflict, escalating NATO tensions. Defence Minister Margarita Robles stated Madrid would not allow its bases or airspace to be used for operations related to the war.
Prime Minister Pedro Sánchez condemned the US-Israeli campaign, calling it unlawful. Trump has threatened trade measures in response.
UN peacekeeper killed in Lebanon
A UN peacekeeper from Indonesia was killed in southern Lebanon, marking the first fatality among the UN Interim Force in Lebanon (UNIFIL) since the conflict escalated. Another peacekeeper was critically injured. An investigation is ongoing.
Ukraine promotes drone expertise
President Volodymyr Zelenskyy has engaged Gulf nations to showcase Ukrainian expertise in drone interception. “Expertise is not a drone, but a system—a strategy,” he said, as Kyiv signed cooperation agreements with Saudi Arabia and Qatar, with more deals in the pipeline.
