Donald Trump has issued a severe warning to Iran amid ongoing tensions over the Strait of Hormuz. On Wednesday morning, the former president claimed that Iran’s new leadership is seeking a truce, but also threatened to “blast the Islamic Republic into oblivion” unless the vital waterway reopens to commercial shipping.

Iran’s Revolutionary Guard Corps quickly rejected Trump’s statements as “nonsense,” insisting that the Strait of Hormuz remains “firmly and dominantly under the control of the naval forces.”

Trump praised Iran’s “new regime president” as “much less radicalised and far more intelligent” than before, but did not specify who Washington might be negotiating with—something Iranian officials have flatly denied. They described Trump’s threats as “absurd displays” and vowed to resist any external pressure.

Trump emphasized that any ceasefire depends on the strait being “open, free, and clear,” adding: “Until then, we are blasting Iran into oblivion or, as they say, back to the Stone Ages.” However, just a day earlier, Trump hinted he might accept a deal even if the Strait of Hormuz remains closed, creating uncertainty in the markets.

Despite the conflicting signals, financial markets responded positively. The Dow Jones Industrial Average jumped 363 points (0.8%), the S&P 500 rose 0.6%, and the Nasdaq climbed 0.7%. Brent crude oil prices fell 2% to $102 per barrel after peaking at $118. Investors appeared hopeful that the conflict might ease.

Behind the rhetoric, the Pentagon is preparing for possible ground operations. The USS Tripoli arrived last Friday with 5,000 sailors and Marines and will be joined by the USS Boxer and two additional warships from the 11th Marine Expeditionary Unit. Thousands of 82nd Airborne paratroopers and hundreds of Special Forces are also en route. The United Arab Emirates may send troops to help secure the Strait of Hormuz.

Trump has extended a temporary halt on strikes targeting Iranian energy infrastructure to ten days, claiming that Tehran requested the pause. Meanwhile, Iranian President Masoud Pezeshkian and Foreign Minister Abbas Araghchi appeared at a rally in Tehran, with Araghchi stating, “This popular cohesion is our greatest defence against any external threat.”

European allies are keen to avoid direct conflict. UK Prime Minister Sir Keir Starmer told Britons, “This is not our war,” but confirmed that Britain is leading 35 nations to coordinate maritime security in the strait, a crucial route for one-fifth of global oil supplies. Coalition talks are scheduled later this week as diplomatic efforts continue to reduce tensions.

Meanwhile, Trump plans a 9 pm ET address to criticize NATO and is even considering pulling the US out of the alliance.

American petrol prices have surged to $4.10 per gallon nationwide, up from $2.90 before the conflict began, adding to public frustration as geopolitical tensions escalate.

Originally published by UKNIP.

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