Markets were lifted after Donald Trump warned Iran it would face “death, fire and fury” if it attempted to block the Strait of Hormuz, one of the world’s most important energy trade routes.
Trump said the Islamic Republic would be hit “twenty times harder” than before if it disrupted oil flows through the strait. The warning followed a sharp surge in oil prices, with Brent crude briefly rising above $100 a barrel on Monday for the first time in four years.
According to the The Wall Street Journal, some advisers have privately urged Trump to find an “off ramp” to the conflict amid concerns that rising fuel prices could trigger domestic political backlash. Officials have also warned that the longer US military operations continue in the Middle East, the harder it may become to withdraw from the conflict.
However, markets steadied after Trump said following a call with Vladimir Putin that “the war is very complete, pretty much”, a remark that helped lift equities and push oil prices lower.
Hours later, writing on his social media platform Truth Social, Trump reiterated his warning, saying the US would strike Iranian targets if oil shipments through the Strait of Hormuz were blocked.
In response, the Islamic Revolutionary Guard Corps said Iran would determine when the conflict ends, signalling that tensions remain high despite market optimism.
