U.S. President Donald Trump has issued a 48-hour ultimatum to Iran, demanding it fully reopen the Strait of Hormuz within two days or face airstrikes on its power plants. The conflict, now in its fourth week, shows no signs of de-escalation, with tensions escalating further.
Facing mounting pressure from soaring oil prices, Trump insisted Iran must “completely reopen” the critical energy corridor “without threats.” In a post on Truth Social at 7:44 p.m. New York time on Saturday, he declared the 48-hour window effective immediately.
Iran responded defiantly: any attack on its power infrastructure would trigger a “total” closure of the Strait of Hormuz. According to Iranian state television on Sunday, the military warned that if power facilities are struck, the strait will be shut completely. Since U.S. and Israeli strikes began on February 28, the strait has been effectively closed, with only limited vessel traffic managing to pass through.
Iran’s semi-official Tasnim News Agency reported that the military would target “all energy, information technology, and desalination infrastructure in the region belonging to the U.S. and Israeli regimes.” Parliament Speaker Mohammad Bagher Ghalibaf added on social media that financial institutions holding U.S. Treasury bonds—and their assets—are also “legitimate targets.”
On Sunday, Iran’s Armed Forces outlined four punitive measures in an official statement:
1. Fully close the Strait of Hormuz until damaged power facilities are rebuilt
2. Launch widespread strikes against all Israeli power generation, energy, and communications infrastructure
3. Completely destroy all U.S.-owned companies operating in the Middle East
4. Target power stations in Middle Eastern countries hosting U.S. military bases
Oil markets remain volatile as investors await concrete action
The exchange of threats underscores both sides’ unwillingness to back down. The ongoing war has already triggered an unprecedented oil and gas supply crisis. Intensified attacks on key regional energy infrastructure over the past week—and these latest threats—heighten fears of prolonged global economic disruption.
Oil prices initially rose modestly before turning choppy as traders assessed the implications of Trump’s ultimatum. Brent crude traded around $112 per barrel, while WTI hovered near $98.
“The next clear move in oil prices will depend on actual actions, not just rhetorical escalation,” said Haris Khurshid, Investment Director at Karobaar Capital LP. “We’re likely to see more pronounced volatility only if shipping or insurance conditions deteriorate significantly.”
Context: A 180-degree shift from de-escalation to ultimatum
Notably, Trump’s hardline stance came just one day after he signaled a potential de-escalation. On Friday (20th), he stated the U.S. was “very close to achieving its objectives” and considering a phased reduction of military operations against Iran, suggesting that nations dependent on the strait should assume responsibility for its security.
Less than 24 hours later, however, his tone reversed dramatically with the 48-hour ultimatum—a whiplash shift that has left governments and markets struggling to respond.
U.S. Treasury Secretary Scott Bessent told NBC on Sunday that Washington “does not rule out any option” regarding restoring passage through the strait. When asked whether the U.S. is de-escalating or escalating the conflict, Bessent replied the two are “not mutually exclusive,” adding, “Sometimes you must escalate to de-escalate.”
