Former President Donald Trump announced on his social media platform that Iran is facing severe financial strain, losing approximately $500 million daily due to the closure of the Strait of Hormuz. He noted unrest among Iran’s military and police over unpaid salaries. In another post, Trump mentioned being approached about Iran’s desire to reopen the strait but warned that doing so without a comprehensive agreement could lead to further escalation.
Asian stock markets showed varied performance in early sessions, with oil prices slightly declining amid speculation of renewed US-Iran negotiations to resolve the conflict. Brent crude dropped 0.2% but remained above $98 per barrel, while US crude fell 0.4% to $89.29. Japan’s Nikkei 225 rose 0.5%, South Korea’s Kospi slipped 0.2%, Australia’s S&P/ASX 200 declined 0.9%, Hong Kong’s Hang Seng fell 1.3%, Shanghai Composite increased 0.1%, and Taiwan’s Taiex gained 1.1%. On Wall Street, the S&P 500 advanced 1.2%, closing at 6,967.38.
The International Monetary Fund now projects global inflation to rise to 4.4% this year, up from a previous estimate of 3.8% and higher than last year’s 4.1%.
Welcome to ongoing coverage of developments in the Middle East. Just before the US-Iran ceasefire was set to end, Trump declared an extension at Pakistan’s urging, pending a consolidated offer from Tehran. The US continues its naval blockade of Iranian ports. This decision follows the postponement of Vice President JD Vance’s visit to Pakistan for additional peace discussions, as Iran insists on lifting the blockade before proceeding. Tehran maintains that talks in Islamabad must promise tangible outcomes.
Pakistan’s President Shehbaz Sharif expressed appreciation to Trump for the extension, noting it supports continued diplomacy. He shared his thanks on behalf of himself and Field Marshal Syed Asim Munir.
Oil prices fluctuated prior to the announcement, with Brent crude rising from under $95 to around $100 before settling at $98.48, a 3.1% increase.
In related events: Exchanges of fire occurred between Israel and Hezbollah in Lebanon. Hezbollah reported launching rockets and drones at Israeli positions in a southern buffer area, prompting Israel to target the launch sites and label the actions a clear breach of the truce. US Ambassador to Israel Mike Huckabee will join the American team for direct Israel-Lebanon negotiations in Washington on Thursday, according to reports.
Treasury Secretary Scott Bessent stated that the blockade will soon force Iran to halt oil production as storage at Kharg Island reaches capacity. He affirmed the US commitment to intense economic measures to impair Iran’s financial operations.
Iran’s Revolutionary Guard aerospace commander, Gen. Majid Mousavi, warned that regional oil infrastructure could suffer if neighboring nations permit US attacks from their territories.
The UK will convene military representatives from more than 30 countries for discussions starting Wednesday on a joint operation, co-led with France, to secure passage through the Strait of Hormuz.
Since the conflict began, casualties include at least 3,375 in Iran, over 2,290 in Lebanon, 23 in Israel, and more than a dozen in Gulf states. Additionally, 15 Israeli troops in Lebanon and 13 US personnel in the region have been killed.
