President Donald Trump, on Monday, issued a stern warning to Iran, threatening to obliterate its key infrastructure if the Strait of Hormuz is not reopened for business “immediately.”

The president announced via a post on Truth Social that the U.S. is in serious discussions with Iran’s new regime to end military operations. He expressed optimism about the progress of the talks but warned of severe consequences if a deal is not reached soon.

Trump’s warning includes the potential obliteration of Iran’s electric generating plants, oil wells, and Kharg Island, and possibly all desalination plants, which he said has purposefully not “touched.”

Escalation Amid Peace Talks

This threat marks a significant escalation in the rhetoric amid ongoing peace negotiations. Interestingly, this also comes after Trump hailed Iran’s new leadership as “very reasonable” and said a regime change had been accomplished.

The president disclosed that the U.S. and Iran have been in discussions, both directly and indirectly, and showed optimism about striking a deal with Iran. He also described Iran's decision to allow 20 vessels through the Strait of Hormuz as a gesture of goodwill and respect.

The Strait of Hormuz, a crucial waterway for global oil shipments, has been a significant point of contention in the ongoing U.S.-Iran tensions.  Last week, Trump also proposed joint control of the strait along with Iran, also referring to it as the Strait of Trump.

Trump’s Pre-Market Moves

Last Monday, in a pre-market announcement, Trump said that the U.S. and Iran have held "very good and productive talks" on resolving hostilities, and paused strikes on Iran’s energy infrastructure for five days. He later extended the timeline to ten days.

It was later reported that traders placed over $500 million in oil market bets just minutes before Trump posted about "productive" Iran talks, which later moved prices sharply.

Iran’s Parliament Speaker Mohammad Bagher Ghalibaf mocked Trump’s market moves. He offered day-trading advice of "do the opposite" to counter Trump's pre-market social media posts, adding a layer of psychological warfare to the ongoing conflict.

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, are trading 0.65% and 0.61%, higher during the Monday pre-market.

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