President Donald Trump stated that the US would strike Tehran even harder if an oil blockade occurred. Iran’s Revolutionary Guards warned on Tuesday that they would prevent any oil shipments from the Middle East if the US and Israel continue their attacks.
Despite this tense rhetoric, crude oil prices fell, and global stock markets rose after Trump expressed confidence that the conflict would end quickly. Iran showed defiance by appointing Mojtaba Khamenei as its new supreme leader.
On Monday, Trump claimed that the US had dealt significant damage to Iran’s military and suggested that the conflict would conclude sooner than the four-week period he initially mentioned, though he did not clarify what would constitute victory.
Trump said US attacks could increase sharply if Iran sought to block tanker traffic through the Strait of Hormuz, which handles one-fifth of the world’s oil supply.
“We will hit them so hard that it will not be possible for them or anyone else helping them to ever recover that section of the world,” Trump told a press conference on Monday.
He reiterated his warning in a Truth Social post, stating, “If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far.”
Israel PM Netanyahu reacts
Israel has stated that its objective in the conflict is to dismantle Iran’s clerical regime.
“Our aspiration is to bring the Iranian people to cast off the yoke of tyranny,” Israeli Prime Minister Benjamin Netanyahu said in a statement issued by his office on Tuesday.
“In the end, that depends on them. But there is no doubt that through the actions taken so far, we are breaking their bones – and our hand is still extended. If we succeed together with the Iranian people, we will bring about a permanent end – if such things exist in the life of nations,” he added.
US officials have mainly said Washington’s aim is to destroy Iran’s missile capabilities and nuclear program, but Trump has said the conflict can end only with a compliant Iranian government.
Saudi Aramco, the world’s top oil exporter, warned on Tuesday of “catastrophic consequences” for global oil markets if the conflict continued to disrupt shipping in the Strait of Hormuz. The Strait is the world’s most vital oil export route, connecting the biggest Gulf oil producers with the Gulf of Oman and the Arabian Sea.
The conflict has already effectively shut the Strait of Hormuz, leaving tankers unable to sail for more than a week and forcing producers to halt pumping as storage facilities fill.
Iranian Foreign Minister Abbas Araqchi said Tehran was unlikely to resume negotiations with the US, which he said had spoken of progress after three rounds of talks.
“Still, they decided to attack us. So, I don’t think talking to the Americans anymore would be on our agenda any more,” he said in an interview with PBS.
The naming of Mojtaba Khamenei on Monday to succeed his late father, Ayatollah Ali Khamenei, seemed to dash hopes for a quick end to the conflict, triggering a spike in oil prices and a plunge in stock markets. Markets reversed course after Trump forecast a rapid resolution and reports emerged of a potential relaxation of sanctions on Russian energy.
After speaking with Russian President Vladimir Putin, Trump mentioned the US would waive oil-related sanctions on “some countries” to ease the shortage.
Reuters, citing sources, suggested this could lead to further easing of sanctions on Russian oil, potentially complicating efforts to penalize Moscow for its war in Ukraine. Other possibilities under consideration include releasing oil from strategic reserves or limiting US exports.
Brent crude futures dropped over 10% on Tuesday after surging as much as 29% on Monday to their highest levels since 2022, while global stock markets also rebounded.
Gasoline prices carry particular political weight in the United States, where voters cite rising costs as a top concern ahead of the November midterm elections, in which Trump’s Republicans aim to maintain control of Congress. A Reuters/Ipsos poll released Monday found that 67% of Americans expect gas prices to climb in the coming months, and only 29% approve of the conflict.
Meanwhile, at least 1,332 Iranian civilians have been killed and thousands wounded, according to Iran’s UN ambassador, since the US and Israel began air and missile strikes across Iran at the end of February.
