The sharp remarks rattled energy markets already shaken by rising tensions around the strategically critical Strait of Hormuz, a vital shipping route through which nearly a fifth of the world’s oil supply passes.
Brent crude climbed above the $103 mark while U.S. benchmark West Texas Intermediate also recorded strong gains as investors feared further disruption to global oil supplies.
Trump’s comments came after Iran reportedly submitted a formal response through regional mediators to a U.S.-backed peace framework intended to de-escalate the conflict that has now stretched into its 11th week.
According to international reports, Tehran demanded the lifting of sanctions, an end to military blockades, guarantees on maritime security, and broader negotiations concerning regional conflicts.
However, the U.S. president rejected the proposal outright, accusing Iran of refusing to negotiate seriously over its nuclear ambitions and missile programs.
Trump reiterated that dismantling Iran’s nuclear capabilities remained a non-negotiable demand for Washington.
The continued instability has heightened fears of prolonged closure or disruption in the Strait of Hormuz, where shipping activity has already slowed significantly.
Several oil tankers have reportedly altered routes or switched off tracking systems amid fears of attacks and military confrontations in the Gulf region.
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Financial markets reacted swiftly to the renewed uncertainty. U.S. stock futures slipped while energy shares rallied, reflecting investor concerns that higher oil prices could fuel inflation and increase fuel costs globally.
Analysts warned that if tensions continue escalating, crude prices could climb even higher in the coming weeks.
Despite the growing economic pressure, Trump maintained a hardline stance, insisting the conflict was about preventing Iran from developing nuclear weapons.
The White House is also expected to intensify diplomatic efforts with allies including Qatar and China in an attempt to revive negotiations and stabilize the region.
Energy experts say the situation remains highly volatile, with markets closely monitoring any developments involving Iranian oil exports, regional military activity, and possible international mediation efforts.
As the geopolitical standoff deepens, consumers around the world may soon feel the impact through rising fuel and transport costs, adding fresh pressure to an already fragile global economy.
