Trump and Iran hurl war threats with Hormuz crisis building

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WASHINGTON – US President Donald Trump gave Iran a two-day deadline to reopen the Strait of Hormuz or have its power plants bombed, upping the ante in a war now in its fourth week with no sign of de-escalation.

Mr Trump, under pressure to bring down soaring oil prices, said Iran must “fully open, without threat”, the vital waterway for energy flows. He gave the Islamic Republic 48 hours “from this exact point in time”, in a Truth Social post sent at 7.44pm New York time on March 21 (7.44am on March 22, Singapore time).

Iran countered that – if its power facilities are attacked – it would close the Strait of Hormuz “completely”, state TV reported on March 22, citing a statement from army command. 

The passage, through which one-fifth of the world’s oil and liquefied natural gas supplies normally flow, has been effectively shut since the US and Israel began attacking Iran on Feb 28. Vessels from certain countries have managed to get through.

The Iranian military will target “all energy, information technology and desalination infrastructure” linked to the US and Israel in the region, the semi-official Tasnim news agency said. A senior Iranian official added on social media that the headquarters and assets of financial entities that buy US Treasury bonds are “legitimate targets”.

The rhetoric suggests neither side is willing to back down, with the war having already triggered an unprecedented oil and gas supply crisis. The latest threats follow a week of heavy hits on crucial energy infrastructure in the Middle East, deepening the risk of long-term global economic impact.

Crude oil swung sharply, jumping 1.9 per cent, before reversing to fall nearly 1.8 per cent to US$110 a barrel. Global benchmark Brent has surged by more than 50 per cent since the strikes by the US and Israel on Iran in late February, threatening to unleash a wave of global inflation.

Price spikes – particularly petrol – pose political risks for Mr Trump at home, just eight months before midterm elections. Some Republicans are uneasy about further escalation.

“When Israel bombed a nonmilitary target, bombed an energy target, the President was not filtered in saying how displeased he was,” Republican Senator Lisa Murkowski of Alaska said on March 22.

She added: “When you move to that next level where you have troops on the ground, we’re talking a different level of conflict than when the administration had briefed us.”

US Treasury Secretary Scott Bessent said attacks are aimed at destroying Iran’s fortifications along the Strait of Hormuz.

Mr Trump will “take whatever steps it takes” to achieve goals, including destroying Iran’s air force and navy, denying it the ability to have nuclear weapons and “their ability to project power internationally”, Mr Bessent said on March 22 on NBC’s Meet The Press.

Oil and petrol flows are likely to take time to return to normal even after the strait reopens, with many production sites damaged. The blockages are causing shortages of fertiliser and crop nutrients, raising the prospect of critical disruptions to food output. 

The US and Israel continued to target sites in Iran on March 22, including around the capital, Tehran. The Islamic Republic is firing missiles and drones at Israel and Arab Gulf nations.

Israeli Prime Minister Benjamin Netanyahu reiterated his country’s military objectives, telling reporters the aims are to “break completely their nuclear programme, break completely their missile programme”.

He added that Israel has “a goal of creating conditions” for Iranians to overthrow their leaders.

Mr David Amsalem, a minister in Mr Netanyahu’s security Cabinet, said it is unclear whether Mr Trump will follow through.

“Look, ultimately, Trump doesn’t tell us – or certainly not me – what he’s about to do,” Mr Amsalem told Galey Israel radio. 

The Iranian regime is not close to falling, with officials coalescing around remaining leaders, according to Western intelligence and people familiar with the matter.

More than 4,000 people have been killed across the region, according to governments and nongovernmental agencies, with more than three-quarters in Iran.

In Lebanon, where Israel has intensified its offensive against Iran-backed Hezbollah militants, the toll exceeds 1,000. Dozens have been killed in Israel and Arab states.

Iran’s missile strikes against Israel have picked up in recent days. On March 21, about 115 people were injured in the southern cities of Arad and Dimona, which lends its name to a nearby nuclear research facility. Iranian media said it was a retaliation against an attack on its Natanz nuclear facility.

Speaking on March 22, Mr Netanyahu called on the leaders of other countries to join the war. 

Mr Trump’s latest warning came a day after he said he was considering “winding down” operations and shifting responsibility for policing Hormuz to other countries – underscoring mixed signals that have left governments and markets scrambling.

Until now, the US and Israel have largely avoided targeting Iran’s power and water plants. Israel did strike fuel depots in Tehran two weeks ago, causing acid rain clouds and drawing veiled criticism from the US, which felt it was a strategic error that could turn Iranian civilians against the offensive.

Iran has around 100 operational natural gas power plants, according to data compiled by Bloomberg. Among the largest are the Damavand plant near Tehran, the Ramin facility north of Ahvaz in the west and the Kerman facility in Chatroud in the south-east.

The Middle East’s energy assets have increasingly come into focus as attacks widen. Israel struck the South Pars gas field on March 18, and Iran retaliated with its own volleys on the world’s largest LNG facility, in Qatar, alongside other Gulf energy assets. BLOOMBERG