Trump Ultimatum to Iran, Tehran Demands Compensation and Sovereignty over Hormuz
US President Donald Trump said Washington is “very controlling of Iran,” but also issued an ultimatum that the US will “make a deal, or they will be destroyed,” according to a New York Times report on Tuesday.
The statement comes amid a war that shows no signs of abating, while strategic energy routes in the region remain a source of market concern. In recent weeks, the Strait of Hormuz has become a particularly sensitive point due to its role as a key link for global oil and fuel flows.
From the Iranian side, Deputy Foreign Minister Kazem Gharibabadi reiterated Tehran’s position that any peace deal must include three things: compensation for Iran, recognition of Iran’s sovereignty over the Strait of Hormuz, and an end to US sanctions.
These differing demands increase the risk of a difficult negotiation, as each side sets conditions that are difficult to meet quickly. For the market, the combination of an ultimatum and counter-conditions is likely to increase geopolitical risk premiums, especially if the situation around Hormuz remains tense.
In terms of market impact, escalating tensions typically keep oil prices high due to the risk of supply disruptions, while also encouraging hedging interest in gold when sentiment turns more defensive. For the US dollar, the direction could be mixed: it could potentially strengthen if the market enters risk-off mode, but could be restrained if an energy surge re-inflates inflation expectations and triggers policy volatility, shifting market attention to yield and inflation dynamics.
5 key points:
- Trump says the US is "controlling Iran" but threatens new attacks if no deal is reached.
- Iran demands that the deal include compensation, sovereignty over Hormuz, and an end to US sanctions.
- The spread increases the likelihood of tough negotiations and prolongs uncertainty.
- Geopolitical risks have the potential to keep energy risk premiums high.
- Market implications: Oil tends to remain elevated, gold receives hedging support, the dollar could strengthen during risk-off periods but remains sensitive to inflation/yields. (asd)*
Source: Newsmaker.id
