The US military launched airstrikes on military targets on Iran's Kharg Island on Tuesday in a stark warning to Tehran. While Kharg Island is a critical oil export hub, the strikes reportedly targeted only military sites and avoided energy infrastructure for now. The move is seen as a final physical pressure before Washington's deadline expires.
President Donald Trump has stepped up his rhetoric, warning that Iran risks "extinction" if it fails to reach a peace deal by 8pm ET on Tuesday. Trump has described the moment as one of the most pivotal in world history. He has vowed that massive military action will follow if US demands are not met within that time.
Despite issuing harsh threats, Trump has left room for diplomatic talks, expressing hope for Iran's new leadership, which he considers "smarter." He has hinted that a deal could still be reached if Tehran is willing to change its radical stance. However, uncertainty remains high as the two sides have yet to reach a deal.
Global market sentiment is currently tense as Trump's previous threats included attacks on power plants and public utilities. Under international law, attacks on public infrastructure are categorized as war crimes under the Geneva Conventions. This concern has investors bracing for the possibility of more severe energy supply disruptions.
