President Donald Trump has issued his harshest warning yet, vowing to completely destroy Iran’s power plants, oil fields, and desalination infrastructure. This action will be taken if the Strait of Hormuz is not reopened immediately and a peace deal fails to be reached soon.
Trump revealed that the US is currently negotiating with what he called a “new, more reasonable regime” in Iran. While claiming that there has been significant progress in the talks, he set a deadline of April 6 before full-scale military action is resumed.
The main focus of the US threat is Kharg Island, a strategic hub that handles 90% of Iran’s crude oil exports with a capacity of 7 million barrels per day. The Trump administration is reportedly considering sending ground troops to seize the island to completely cripple Iran’s economy.
Iran has so far described the 15-point peace plan put forward by the US as “extreme,” while Tehran’s top leaders continue to deny the existence of any direct talks with Washington. The tensions have brought shipping traffic in the Strait of Hormuz to a complete standstill since late February.
Oil markets responded to the warning with Brent crude rising to its highest monthly gain on record. Investors are now worried about the risks to global energy supplies if Iran's threat to destroy its energy infrastructure is carried out after a lull expires in April.
