Trump Threatens Major Iran Strikes Over Strait Deadline

Got story updates? Submit your updates here. ›

President Donald Trump has intensified his rhetoric toward Iran, threatening major infrastructure strikes if the Strait of Hormuz is not reopened under a 48-hour deadline he set. The not-safe-for-work message triggered an immediate uproar across social media, with Trump warning that 'all hell' would rain down if the Strait was not reopened. Meanwhile, markets are bracing for hotter inflation as March payrolls beat expectations.

Why it matters

The escalating tensions between the U.S. and Iran over the Strait of Hormuz, a critical global oil chokepoint, could have significant geopolitical and economic implications. Disruptions to oil flows through the Strait could drive up energy prices and roil global markets. Additionally, the Biden administration's response to Trump's inflammatory rhetoric will be closely watched.

The details

In a series of tweets, Trump threatened to target Iranian power plants and bridges if the Strait of Hormuz is not reopened within 48 hours. The president also said he is 'considering blowing everything up and taking over the oil' if a deal is not reached quickly. Prediction markets showed limited movement following the comments, with the odds of the Strait returning to normal by May 15 holding around 14%. Meanwhile, OPEC+ members are expected to approve a modest increase in May oil production targets despite the disruption to flows.

• On Saturday, Trump set a 48-hour deadline for Iran to reopen the Strait of Hormuz.
• On Sunday, Trump posted a tweet threatening major infrastructure strikes in Iran on Tuesday.
• On Friday, March's CPI report will be closely watched for the early impact of higher oil prices.

What they’re saying

What’s next

The Biden administration's response to Trump's inflammatory rhetoric will be closely watched, as will any further developments in the tensions between the U.S. and Iran over the Strait of Hormuz.