Global Pressure Mounts, Trump Continues Iran Operations, Hormuz Remains Locked
US President Donald Trump faces mounting international pressure after asserting in a keynote address that war operations against Iran will continue for the next two to three weeks. The statement sparked renewed turmoil in energy markets, while there is no sign the Strait of Hormuz, despite its crucial passage for global oil and gas flows, will soon be reopened.
Responses from allies and regional countries show differing approaches. French President Emmanuel Macron called attempts to open Hormuz through military means “unrealistic” and urged consultations with Iran. The United Arab Emirates urged the UN to authorize measures, including military options, to restore energy supplies, amid concerns about a supply crisis. Iran, on the other hand, stated that it had received the US message through intermediaries but considered Washington's demands “maximalist and illogical,” while continuing missile and drone attacks in the Gulf region.
These tensions were immediately reflected in prices and financial assets. Brent crude rose about 8% to above US$109 per barrel, while European diesel futures surpassed US$200 per barrel, their highest level since 2022, highlighting the risk of renewed inflation. At the same time, US Treasury yields rose and global stocks weakened, reinforcing fears of a stagflation scenario—higher inflationary pressures with slower growth—if energy disruptions were prolonged.
On the security front, the US Embassy in Baghdad warned of potential attacks by Iraqi militias in the next two days, including against American citizens. Israel also reportedly suffered one of the largest Iranian missile attacks since the conflict began in late February, while Israel said it had struck several Iranian military targets, including sites linked to the Revolutionary Guard Corps and ballistic missile storage facilities.
The Strait of Hormuz remains a key market determinant. The passageway through which about a fifth of the world's oil and LNG normally passes has been largely closed since hostilities began, and Brent is said to have surged about 60% since the outbreak of the war. Trump asserted that the energy shock would subside after the fighting ceased, but did not elaborate on how the US would convince Iran to allow traffic to return to normal, other than calling on allies dependent on Middle Eastern supplies to "safeguard the passageway."
On the diplomatic front, the UK is leading a virtual meeting with foreign ministers from around 35 countries, including the UAE, France, Germany, Italy, Canada, and Japan, to discuss restoring freedom of navigation in Hormuz—with the US not scheduled to attend. The plan discussed covers three tracks: diplomatic, economic, and military, with an initial focus on diplomacy through countries with channels of communication to Tehran; if that fails, the option of economic sanctions targeting Iran's oil and shipping industries could be considered.
The UAE is also urging the UN Security Council to take "urgent action" to ensure safe navigation and freedom of navigation rights around Hormuz. While the resolution does not establish a new UN mission, UN support is seen as providing diplomatic cover for Gulf states should they choose to conduct military operations or form a naval task force to help reopen the waterway. (alg)
Source: Newsmaker.id
