President Donald Trump has said the US will attack Tehran even harder if the oil embargo is lifted. Iran’s Revolutionary Guards warned on Tuesday that if the US and Israel continued their attacks, they would cut off any oil supplies from the Middle East.
Despite the tense rhetoric, oil prices fell and global stock markets rose after Trump expressed confidence that the conflict would end quickly. Iran showed defiance by appointing Mojtaba Khamenei as its new supreme leader.
On Monday, Trump claimed the U.S. had inflicted significant damage on Iran’s military and suggested the conflict would end sooner than the four-week period he had initially hinted at, though he did not specify what victory would mean.
Trump said U.S. strikes could escalate if Iran tried to block tanker traffic through the Strait of Hormuz, which carries a fifth of the world’s oil supplies.
“We’re going to hit them so hard that it’s not going to be possible for them or anyone else to ever help them rebuild this part of the world,” Trump said at a press conference on Monday.
He reiterated his warning in a Truth Social post, stating, “If Iran does anything to stop the flow of oil in the Strait of Hormuz, the United States will hit it TWENTY TIMES HARDER than it has been hit so far.
Israeli Prime Minister Netanyahu reacts
Israel has stated that its goal in the conflict is to dismantle Iran’s clerical regime.
“Our effort is to make the Iranian people throw off the yoke of tyranny,” Israeli Prime Minister Benjamin Netanyahu said in a statement issued by his office on Tuesday.
“Ultimately it is up to them. But there is no doubt that we are breaking their bones with our actions so far – and our hand is still out. If we succeed together with the Iranian people, we will bring about a permanent end – if such things exist in the lives of nations,” he added.
U.S. officials have mainly said Washington’s goal is to destroy Iran’s missile capabilities and nuclear program, but Trump has said the conflict can end only with the Iranian government complying.
Saudi Aramco, the world’s biggest oil exporter, warned on Tuesday of “catastrophic consequences” for global oil markets if the conflict continues to disrupt shipping in the Strait of Hormuz. The strait is the world’s most important oil export route, connecting the largest oil producers in the Persian Gulf with the Gulf of Oman and the Arabian Sea.
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The conflict has already effectively closed the Strait of Hormuz, preventing tankers from sailing for more than a week and forcing producers to halt pumping as storage facilities fill up.
Iranian Foreign Minister Abbas Araqchi said Tehran was unlikely to resume talks with the US, which he said had talked about progress after three rounds of talks.
“They still decided to attack us. So I don’t think talks with the Americans are on our agenda anymore,” he said in an interview with PBS.
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Monday’s appointment of Mojtaba Khamenei to succeed his late father, Ayatollah Ali Khamenei, appeared to dash hopes for a quick end to the conflict, triggering a surge in oil prices and a plunge in stock markets. Markets reversed course after Trump predicted a quick resolution and news of a possible easing of sanctions on Russian energy.
After speaking with Russian President Vladimir Putin, Trump mentioned that the US would drop oil-related sanctions on “certain countries” to ease oil shortages.
Citing sources, Reuters said this could lead to further easing of sanctions on Russian oil, which could complicate efforts to penalize Moscow for its war in Ukraine. Other options being considered include releasing oil from strategic reserves or limiting US exports.
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Brent crude futures fell more than 10% on Tuesday after rising as much as 29% to their highest since 2022 on Monday, while global stock markets also bounced.
Gasoline prices carry particular political weight in the United States, where voters cite rising costs as a top issue ahead of November’s midterm elections, in which Trump’s Republicans aim to retain control of Congress. A Reuters/Ipsos poll released on Monday found that 67% of Americans expect gas prices to rise in the coming months and only 29% approve of the conflict.
Meanwhile, at least 1,332 Iranian civilians have been killed and thousands injured since the US and Israel launched air and missile strikes on Iran in late February, according to Iran’s UN ambassador.
