Amid escalating tensions, numerous concerned nations explored options to resume crucial energy shipments through the Strait of Hormuz on Thursday after U.S. President Donald Trump declared plans for more forceful attacks on Iran. This announcement pushed oil prices higher, intensifying the financial burden on consumers worldwide.
Trump declared that military operations against Iran would be ramped up without specifying an end date, provoking retaliatory threats from Tehran and causing stock markets to decline. In a Wednesday night address, he warned, “We’re going to hit them extremely hard over the next two to three weeks. We’re going to bring them back to the Stone Ages where they belong.” The following day, Trump reiterated his stance on Truth Social, urging Iran to “make a deal before it is too late,” and shared footage appearing to show strikes on an Iranian bridge.
Despite the loss of several leaders, Iran remained defiant and proposed an alternative framework for managing the Strait of Hormuz, a strategic waterway that normally handles about one-fifth of global oil consumption but is currently nearly closed. Tehran revealed it was drafting an agreement with Oman to oversee maritime traffic in the strait. Deputy Foreign Minister Kazem Gharibabadi emphasized that these measures aim to facilitate safe passage and improve services for vessels, rather than impose restrictions. He added that ships would require permits and licenses coordinated between Iran and Oman.
Trump warned that the conflict could escalate further if Iran refused to comply with U.S. demands, including potential strikes on its energy and oil infrastructure. He advised countries dependent on fuel shipments through the strait to “just grab it.” However, European and other nations have stated they will only assist in securing the strait if a ceasefire is established. In a virtual meeting chaired by Britain, involving around 40 countries, discussions focused on diplomatic and economic solutions to restore freedom of navigation. French President Emmanuel Macron stressed that any resolution must involve consultation with Iran.
Although the meeting concluded without concrete agreements, participants agreed that Iran should not impose transit fees on vessels and that the strait must remain accessible to all nations. In response to Trump’s threats, Iran’s armed forces warned of “more crushing, broader and more destructive” retaliatory attacks. Ebrahim Zolfaqari, spokesperson for the Iranian military’s Khatam al-Anbiya central headquarters, declared the conflict would persist until Iran’s adversaries face “permanent regret and surrender.”
Iran’s Fars news agency later identified several bridges in Saudi Arabia, Kuwait, Abu Dhabi, and Jordan as potential targets following air strikes on one of its own bridges. The Revolutionary Guards claimed responsibility for targeting an Amazon cloud computing center in Bahrain. Concerns are mounting that Iran could gain control over Middle East energy supplies, having demonstrated its capability to block the Strait of Hormuz by attacking oil tankers and Gulf countries hosting U.S. forces.
Gulf states have asserted their right to self-defense but have so far refrained from military retaliation to avoid escalating the conflict into a broader regional war. Meanwhile, Iran’s parliament is reviewing legislation that would formalize blocking vessels from hostile nations and impose tolls on others passing through the strait, as stated by spokesperson Abbas Goodarzi.
The conflict, which began on February 28 with U.S. and Israeli air strikes on Iran, has resulted in thousands of deaths across the Middle East. Iranian attacks have targeted Israel, U.S. bases, and Gulf states, while opening a new front in Lebanon. Iran reported injuries from air strikes on a bridge linking Tehran and Karaj, along with significant damage to major steel producers and the Pasteur Institute medical research center in Tehran.
The Revolutionary Guards announced attacks on U.S.-linked steel and aluminum facilities in Gulf states and vowed to intensify such operations if Iranian industries are targeted again. In Jerusalem, sirens and interceptor explosions were heard after the Israeli military detected a missile launch from Yemen toward Israel. Yemen’s Iran-aligned Houthis had previously claimed responsibility for attacks on Israel, marking the conflict’s expansion across the region.
Fuel shortages are already straining economies in Asia and are expected to impact Europe soon. A report by two U.N. agencies warned that a sharp economic slowdown could trigger a cost of living crisis in Africa. Benchmark Brent crude prices surged approximately 7% to around $108 per barrel, U.S. bond yields rose, and global equity markets lost earlier gains. Russel Chesler, Head of Investments and Capital Markets at VanEck Australia, summarized the prevailing uncertainty: “The key question in all investors’ minds is ‘When is this going to be over?’”
