Trump said operations would be intensified and gave no timeline for ending hostilities, drawing threats of retaliation from Tehran.

“We’re going to hit them extremely hard over the next two to three weeks. We’re going to bring them back to the Stone Ages where they belong,” Trump said in a Wednesday evening speech.

How Did Oil and Markets React?

Benchmark Brent crude prices jumped by about 7% to around $108 per barrel, erasing the previous day’s decline. U.S. bond yields spiked, and global equity markets gave back gains from the prior two sessions. “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.

The volatility came after Trump suggested the war could escalate if Iran did not give in to Washington’s terms during negotiations, with strikes on Iran’s energy and oil infrastructure possible.

What Is Iran Proposing for the Strait?

Despite being defiant after the death of a slew of its leaders, Iran said it was drafting a protocol with Oman on monitoring ships in the strait, which carries about a fifth of the world’s oil consumption in normal times but is now virtually closed.

“We are developing a protocol for Iran and Oman to monitor passage and navigation through the Strait of Hormuz,” Deputy Foreign Minister Kazem Gharibabadi said, according to the official IRNA news agency. “Of course, these requirements will not mean restrictions, but rather to facilitate and ensure safe passage and provide better services to ships that pass through this route.”

Iran’s parliament was also reviewing a bill that would formalize the blocking of vessels from hostile countries and charge tolls for others wishing to pass, spokesperson Abbas Goodarzi said.

What Is the International Response?

Britain chaired a virtual meeting of some 40 countries to explore ways to restore freedom of navigation, saying the focus was on diplomatic and economic tools. However, European and other states have said they will only help secure the strait if there is a ceasefire.

“It can only be done in consultation with Iran,” French President Emmanuel Macron said. Finnish President Alexander Stubb said he discussed the situation with Iranian President Masoud Pezeshkian, urging a diplomatic solution. “I emphasized the need to end the strikes on neighbouring countries and restore freedom of navigation in the Strait of Hormuz,” Stubb said.

Trump, however, told countries that rely on fuel shipments through the strait to “just grab it.”

What New Threats Has Iran Issued?

Iran’s armed forces responded to Trump with a warning of “more crushing, broader and more destructive” attacks. The war will continue until the “permanent regret and surrender” of Iran’s enemies, said Ebrahim Zolfaqari, spokesperson for the Iranian military’s Khatam al-Anbiya central headquarters.

Iran’s Fars news agency listed several bridges in Saudi Arabia, Kuwait, Abu Dhabi and Jordan as potential targets. The Revolutionary Guards said they had targeted an Amazon cloud computing center in Bahrain. They also said they had targeted U.S.-linked steel and aluminum facilities in Gulf states and would step up such attacks if Iranian industries were hit again.

What Is Happening on the Ground?

Thousands of people have been killed across the Middle East since February 28. Iran said several people were likely injured when a bridge linking Tehran and the western city of Karaj was hit by air strikes. Some of its largest steel producers and Tehran’s Pasteur Institute medical research centre sustained serious damage.

Israel reported new incoming missile salvoes on Thursday. Saudi Arabia said it had intercepted four drones, and Abu Dhabi said it had intercepted a missile with minor damage near an economic zone. The U.S. embassy in Baghdad urged its citizens to leave Iraq, warning of attacks by Iran-allied militia in the next 24 to 48 hours.

What Is the Global Economic Impact?

Fuel shortages have already caused economic strains across Asia and are expected to bite in Europe soon. A report by two U.N. agencies warned a sharp economic slowdown could spark a cost of living crisis in Africa. Russia said it would ask the U.S. and Israel to cease fire for its staff to leave Iran’s Bushehr nuclear power plant.

FAQs: Strait of Hormuz Crisis

Q: What did Trump vow in his speech?

A: Trump said the U.S. would hit Iran “extremely hard over the next two to three weeks” and bring them “back to the Stone Ages.”

Q: How did oil prices react?

A: Brent crude jumped about 7% to around $108 per barrel after falling the previous day.

Q: What is Iran proposing with Oman?

A: Iran is drafting a protocol with Oman to monitor ship passage through the strait, saying it will facilitate safe passage and provide better services.

Q: What did Britain do?

A: Britain chaired a virtual meeting of some 40 countries to explore diplomatic and economic tools to restore freedom of navigation.

Q: What new targets did Iran list?

A: Iran listed bridges in Saudi Arabia, Kuwait, Abu Dhabi and Jordan as potential targets and said it hit an Amazon cloud center in Bahrain.

Q: What is the global economic impact?

A: Fuel shortages are causing strains across Asia and Europe, and a UN report warned of a cost of living crisis in Africa.

Disclaimer: This information is based on inputs from news agency reports. TSG does not independently confirm the information provided by the relevant sources.