President Donald Trump has issued a 48 hour ultimatum to Iran, warning that the United States could take severe military action if Tehran does not reopen the Strait of Hormuz.
Speaking Saturday, Trump threatened to “obliterate” Iran’s power plants if the waterway remains closed. The strait is one of the most important shipping routes for global energy supplies, and disruptions there could have widespread economic consequences.
Iran responded swiftly, warning that American assets across the Persian Gulf could become targets if Washington follows through. Iranian officials said infrastructure tied to U.S. interests in the region, including energy facilities and desalination plants, could be struck in retaliation.
The confrontation comes after a series of military exchanges involving Israel. Iranian forces recently targeted nuclear facilities in Israel, according to reports circulating in the region. At the same time, there were reports that Israeli and U.S. forces had carried out attacks on an Iranian nuclear enrichment complex.
The Israeli military confirmed that several missiles reached the southern cities of Dimona and Arad after defensive systems failed to intercept them.
Iran’s parliamentary leadership also issued a warning directed at the financial world. Iran’s speaker of Parliament said institutions helping finance the U.S. military could also be considered targets, adding that buyers of American government debt were effectively purchasing “a strike on your HQ and assets.”
The sharp rhetoric on both sides has increased concerns that the standoff could develop into a longer regional conflict.
Business leaders and market analysts are closely watching the situation, particularly because the Strait of Hormuz plays a central role in transporting global oil supplies. Any extended disruption could have ripple effects across energy markets and supply chains.
For now, financial markets appear cautious but stable. Oil prices steadied on Monday after recent volatility tied to the conflict. Still, analysts say additional strikes on infrastructure or energy facilities in the Middle East could quickly send prices higher.
U.S. markets have also shown signs of strain. Stock futures were mostly unchanged Monday, though last week ended with declines across the major indices. The S&P 500 dropped more than 1.5 percent and slipped below its 200 day moving average for the first time since May. The Dow recorded its first four week losing streak since 2023, while the Nasdaq fell about 2 percent during the same period.