Donald Trump has threatened to strike Iran's power plants unless a deal is reached, following a third night of US strikes and the announcement of a maritime blockade of the Strait of Hormuz that has driven oil prices to a monthly high.
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Key facts
- Trump threatened to strike Iranian power plants unless a deal is reached.
- The US launched a third night of strikes on Iran, according to the Guardian.
- Trump announced a blockade of the Strait of Hormuz and said the shipping route is open for all except Iranian ships.
- The US issued new Iran-related sanctions on Tuesday.
- Oil prices rose to their highest point since the two countries agreed to a peace deal.
US President Donald Trump has threatened to strike Iranian power plants unless a deal is reached, escalating a renewed conflict between the two countries, according to the Guardian’s live coverage of the Middle East crisis.
The threat came after the United States launched a third night of strikes on Iran. Alongside the military action, Trump announced a blockade of the Strait of Hormuz, a critical shipping route for global oil supplies. He claimed the route remains open for all ships except those from Iran.
The US also issued new Iran-related sanctions on Tuesday, adding economic pressure to the military escalation, the Guardian reported.
The combination of the missile strikes and the maritime blockade has lifted oil prices to their highest point in the month since the two countries agreed to a peace deal, according to the outlet.
Economists warn that resurgent oil and fuel prices could cement a fourth interest rate rise in Australia this year if Trump’s renewed conflict with Iran is not resolved within a week, the Guardian said.
The developments mark a sharp deterioration in relations after an earlier peace deal between Washington and Tehran, with markets now closely watching whether the standoff is resolved in the coming days.
Why it matters
The Strait of Hormuz is one of the world's most important routes for oil shipments, so a blockade and renewed strikes threaten to push energy prices higher globally. Economists warn the resulting increase in oil and fuel costs could feed through to interest rate decisions in economies such as Australia, affecting households far from the conflict.
Frequently asked questions
What has Trump threatened to do to Iran?
According to the Guardian, Trump threatened to strike Iranian power plants unless a deal is reached.
How are oil prices being affected?
The US missile strikes and Trump's announcement of a maritime blockade have lifted oil prices to their highest point in the month since the two countries agreed to a peace deal, the Guardian reported.
Could the conflict affect interest rates?
Economists warn that resurgent oil and fuel prices could cement a fourth interest rate rise in Australia this year if the conflict is not resolved within a week, according to the Guardian.
Timeline
- Trump threatens to bomb bridges and power plants unless Iran resumes talks
BBC World: Trump's comments aired as the two countries exchanged fire for the fourth day in a row and the US resumed blockading Iranian ports.
- Trump again threatens to strike Iran’s power plants amid impasse over strait of Hormuz
The Guardian World: US president says he will knock out all Iran’s power plants and bridges next week in bid to force Tehran to agree to a deal Middle East crisis – live updates President Donald Trump has threatened to expand US strikes on Iran next week to target power plants and bridges if Tehran
- Trump threatens to strike Iran power plants unless deal reached – Middle East crisis live
The Guardian World: Donald Trump claims shipping route is open for all except Iranian ships as US issues new Iran-related sanctions Tuesday US launches third night of strikes on Iran as Trump announces Hormuz blockade Resurgent oil and fuel prices could cement a fourth interest rate rise in Australi