Israel carried out additional strikes on Tehran Monday as Iran warned it could begin targeting power plants across the Gulf. The warning came after former President Donald Trump posted a 48-hour ultimatum on Truth Social over the weekend demanding that Iran reopen the Strait of Hormuz, a move that rattled markets and sent stocks lower.
Iran’s Supreme National Security Council said non-belligerent vessels may only transit the Strait of Hormuz with coordination from Tehran and warned that any attack on Iranian coasts or islands would prompt mine-laying across Gulf sea lanes. The council also pledged a “decisive and devastating” response to strikes on Iran’s energy infrastructure.
On Truth Social, Trump announced plans to strike Iranian power plants, writing that the U.S. would begin by targeting the largest facilities. About one-fifth of global oil shipments passed through the Strait of Hormuz last year. Iran’s threats to commercial shipping have effectively curtailed much traffic through the vital waterway, raising concerns about prolonged disruption to global energy supplies.
Markets reacted sharply. Stocks in Asia and Europe fell Monday while oil prices remained above $100 a barrel — more than 50% higher since the conflict with Iran began. The volatility highlighted fears the fighting could continue even as Trump has signaled he is weighing a possible “winding down” of U.S. military activity in the region.
Saudi Arabia’s Defense Ministry reported intercepting a ballistic missile aimed at Riyadh and continued to intercept drones overnight.
Key developments:
– Iran’s threats to Gulf energy infrastructure: Iranian officials warned that if the U.S. strikes Iranian power plants, Tehran would retaliate against energy and water facilities across the Gulf, including in countries that host U.S. military bases. The Defense Council reiterated that transit for “non-belligerent” ships must be coordinated with Iran and warned that mine-laying beyond the narrow Strait could effectively block wider maritime traffic.
– CENTCOM assessment: U.S. Central Command commander Adm. Brad Cooper said the Strait of Hormuz is “physically open” but commercial vessels are avoiding the area because Iran has been firing missiles and drones at ships. Cooper told Iran International that the U.S. campaign is “ahead or on plan” and asserted Iran’s military capabilities are deteriorating. He accused Iran of increasingly targeting civilians across the Middle East, saying the country has deliberately struck civilian targets more than 300 times in recent weeks.
– IEA warning on economic risk: International Energy Agency director Fatih Birol warned the conflict poses a “major, major threat” to the global economy by disrupting oil and gas flows. Speaking in Canberra, Birol described the situation as “very severe,” noting at least 40 energy facilities across nine countries have been severely damaged in the conflict. He said oil supply losses have reached roughly 11 million barrels per day — a disruption larger than the combined shocks of 1973 and 1979 — and that the IEA is consulting with governments about releasing additional strategic reserves beyond the roughly 400 million barrels already released earlier this month.