Israel carried out additional strikes on Tehran Monday as Iran warned it could begin targeting power plants and other infrastructure across the Gulf in retaliation for threats from the United States. The escalation followed former President Trump’s 48-hour ultimatum over the weekend demanding that Iran reopen the Strait of Hormuz, a move that rattled markets.
Iran’s Supreme National Defense Council said only vessels coordinating passage with Tehran should transit the Strait of Hormuz and warned that any attack on Iran’s coasts or islands would prompt mine-laying across Gulf sea lanes, potentially blocking maritime traffic beyond the narrow strait. The council also pledged a “decisive and devastating” response to strikes on Iranian energy infrastructure.
On Truth Social, Trump warned the U.S. would strike and “obliterate” Iranian power plants, saying the biggest would be targeted first. Roughly a fifth of the world’s oil passed through the Hormuz route last year, and Iran’s threats to vessels have effectively halted routine traffic, raising fears of sustained disruption to global energy supplies.
Global markets responded quickly: Asian and European stocks fell Monday while oil prices remained above $100 per barrel, roughly 50% higher than at the start of the war. The heightened volatility underlines that the conflict shows little sign of abating, even as Trump has at times suggested he might “wind down” military efforts in the region.
Regionally, Saudi Arabia reported intercepting a ballistic missile aimed at Riyadh and continued to intercept drones overnight. In Israel, officials said a recent Iranian ballistic missile strike damaged residential areas in Dimona and wounded more than 50 people; Prime Minister Benjamin Netanyahu visited the affected area.
U.S. Central Command chief Adm. Brad Cooper said the Strait of Hormuz is “physically open,” but added that many ships are avoiding the route because Iran has been firing missiles and drones at vessels. Cooper told Iran International that the U.S. campaign against Iran’s military is “ahead or on plan” and accused Iran of increasing deliberate attacks on civilian targets in recent weeks, saying those strikes have occurred more than 300 times.
The International Energy Agency’s executive director, Fatih Birol, warned governments Monday that the global economy faces a “major, major threat” from disruptions to oil and gas flows. Birol said at least 40 energy facilities across nine countries have been severely damaged and estimated current losses near 11 million barrels per day—more than the combined shocks of the 1973 and 1979 oil crises. The IEA said it was consulting with governments about additional releases from strategic reserves beyond the roughly 400 million barrels already made available earlier this month.
As tensions rise, Tehran’s statements about retaliating against energy and water infrastructure in Gulf states — including countries that host U.S. bases — and the threat to lay mines in Gulf shipping lanes have increased concerns about prolonged interruptions to oil exports and broader regional escalation. Diplomatic and military officials from multiple countries are monitoring the situation closely as markets and shipping continue to react to the unfolding crisis.