Global markets are on edge after U.S. President Donald Trump issued a new ultimatum to Iran, threatening to destroy power plants and other civilian infrastructure unless the Strait of Hormuz is reopened by Tuesday at 8:00 p.m. EST. Iran swiftly rejected both the ultimatum and a temporary cease-fire proposal mediated by Pakistan, deepening uncertainty in a conflict already reshaping energy and financial markets.
The tension follows a series of escalations in the month-old war, as Washington increases its military pressure on Tehran amid soaring oil prices and tightening global fuel supplies. According to Bloomberg reporting, Trump had already warned Tehran that U.S. strikes could resume “within days” if energy flows through Hormuz remained blocked.
The President’s increasingly aggressive and erratic rhetoric has triggered a storm in Washington. Leading lawmakers and analysts are privately discussing the possibility of invoking the 25th Amendment, which allows for the removal of a sitting president deemed unfit for office. The debate reflects growing alarm about Trump’s handling of the Iran war and his threats to expand U.S. strikes beyond military targets . In a geopolitical and financial twist, Chinese payments companies are seeing a rally in share prices as Tehran begins charging transit fees in yuan for vessels permitted to pass through the Strait of Hormuz. The move has boosted trading volumes across China’s cross-border settlements network, reinforcing Beijing’s push to internationalize its currency amid Western sanctions.In Europe, the fallout from the conflict is being felt acutely in the transport and energy sectors. Four Italian airports have begun rationing jet fuel as supplies tighten, according to local media reports, while the Dutch Central Bank’s president said the European Central Bank’s next policy meeting will debate whether to hold or raise interest rates amid persistent inflation and a deteriorating energy outlook.Global markets are opening the week in a cautious mood. Chinese stocks slipped 0.5%, Japan traded flat, and U.S. futures edged up less than 0.5%, buoyed by faint hopes of a cease-fire. With European markets closed for the Easter holidays, trading volumes remain thin.
Brent crude fell 1% to $108 per barrel, modestly easing from last week’s highs as traders weighed supply constraints against the prospect of renewed diplomacy . The standoff now sits at a dangerous crossroads: a narrow diplomatic window mediated by Pakistan, rising calls for U.S. political intervention, and a global economy increasingly hostage to the fate of a single maritime chokepoint.