By Elsie Kamsiyochi
As the Iran–U.S. conflict deepened on Thursday, governments around the world scrambled to find a path to reopening the Strait of Hormuz, a shipping corridor whose closure is tightening pressure on energy markets and threatening global economic stability.
The urgency escalated after U.S. President Donald Trump pledged to intensify military operations against Iran, triggering another spike in oil prices and broad turbulence in financial markets.
Trump, speaking in a primetime address on Wednesday, vowed a campaign of sustained strikes with no clear end date. His remarks sent crude oil futures soaring and rattled investors already bracing for prolonged instability. “We’re going to hit them extremely hard over the next two to three weeks,” Trump declared. “We’re going to bring them back to the Stone Ages where they belong.”
On Thursday, he reinforced the warning on Truth Social, urging Iran to negotiate “before it is too late” and posting video footage purporting to show U.S. strikes on a bridge inside Iran.
Iran Pushes Forward Its Own Plan for Hormuz
Iran, facing the loss of senior commanders and heavy damage to industrial facilities, responded with defiance. Rather than signaling any willingness to de-escalate, Tehran unveiled an alternative framework for managing the Strait of Hormuz — a waterway that typically transports about 20% of the world’s oil but has been largely closed for days.
Iranian Deputy Foreign Minister Kazem Gharibabadi told state media that Tehran was drafting a maritime monitoring protocol with Oman, insisting it was meant to “ensure safe passage,” not restrict movement. But he also said vessels would require permits and licenses jointly approved by Iran and Oman — a proposal many countries view as Iran asserting unilateral control over the chokepoint.
More confrontational remarks followed. Iranian military spokesperson Ebrahim Zolfaqari threatened “more crushing, broader and more destructive attacks” in retaliation for U.S. strikes. Iran’s Fars News Agency released a list of bridges in Saudi Arabia, Kuwait, Abu Dhabi and Jordan that it described as potential future targets.
The Revolutionary Guards escalated further by claiming responsibility for a strike on an Amazon cloud computing facility in Bahrain, saying such attacks would intensify if Iran’s industrial and research centers continued to come under fire.
Global Diplomacy Scrambles for a Solution
The geopolitical consequences of the conflict have widened rapidly. European and Asian states that rely heavily on Gulf oil shipments pressed for immediate diplomatic intervention.
Britain hosted a virtual meeting of roughly 40 nations focused on restoring maritime access, though the discussion yielded no concrete plan. The consensus: any effort to reopen the strait must involve Iran, and no country would support reopening it by force. French President Emmanuel Macron echoed the view bluntly: “It can only be done in consultation with Iran.”
Officials involved in the talks said participating nations agreed Iran must not be allowed to impose transit fees or restrict access for political leverage — a possibility Tehran is already considering. Iran’s parliament is debating legislation that would formally block vessels from “hostile nations” and allow tolls for those permitted to pass.
Markets React: Oil Surges, Stocks Sink
Energy markets immediately felt the shock. Brent crude prices jumped around 7%, pushing them past $108 a barrel. U.S. Treasury yields rose sharply as investors fled to safer assets, while stock markets across Asia, Europe and North America sagged in response to Trump’s declaration of an expanded assault.
“The key question in all investors’ minds is: ‘When is this going to be over?’” said Russel Chesler, Head of Investments and Capital Markets at VanEck Australia. But with both sides escalating rhetoric — and military action — few analysts expect a quick resolution.
Conflict Widens Across the Middle East
The violence that started with U.S.–Israeli airstrikes on February 28 has now killed thousands across the region. Iran has launched missiles at Israel, U.S. facilities, and Gulf countries hosting American troops. Yemen’s Iran-backed Houthi movement has begun firing toward Israel again, prompting missile alerts over Jerusalem.
Inside Iran, the government reported injuries after a bridge connecting Tehran to Karaj was struck. Damage was also confirmed at two major steel plants and at the Pasteur Institute of Iran, a key medical research center. In retaliation, Iran says it has hit U.S.-linked industrial facilities across the Gulf.
Gulf states, though repeatedly targeted, have refrained from direct military retaliation. Officials there worry that striking back could ignite an all-out regional war—one that would devastate global energy supplies and overwhelm their security infrastructure.
Economic Fallout Spreads Worldwide
Fuel shortages have begun straining budgets in Asia and are expected to intensify in Europe. A joint report by U.N. agencies warned that a prolonged disruption could trigger a severe cost-of-living crisis in Africa, where economies are especially vulnerable to energy price swings.
With the Strait of Hormuz still blocked and no negotiations underway, fears are growing that Iran could emerge with unprecedented leverage over global energy flows — a scenario analysts warn could permanently reshape the geopolitical balance of the Middle East.
Source Reuters
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