President Donald Trump’s threat to bomb Iranian power plants and bridges on April 7 has pushed global oil prices past $100 a barrel, escalating a five-week war and raising fears of a wider conflict.
"Top aides have privately made the case to President Trump in recent days that Iran’s power-generating facilities and bridges are legitimate military targets because destroying them could cripple the country’s missile and nuclear programs," said Michael R. Gordon and Alexander Ward, reporters at The Wall Street Journal.
Brent crude futures jumped 3.5 percent to $101.50 a barrel, their highest since 2022. The flight to safety sent gold up 1.2 percent to $2,350 an ounce, while the S&P 500 dropped 1.5 percent on the heightened geopolitical risk.
The ultimatum puts the global economy on edge, as a closure of the Strait of Hormuz would choke off 21 percent of the world's daily oil supply. The conflict has already killed thousands and displaced millions, with the international community warning against targeting civilian infrastructure under the Geneva Conventions.
Trump's social media post on April 5 was unambiguous: "April 7th will be Iran's power plant and bridge day," he wrote, adding, "Open that damn strait, or you will live in hell - you'll see!"
The threat follows a U.S. airstrike that destroyed a major bridge west of Tehran, which the White House framed as a legitimate military target. Aides argue that crippling Iran's infrastructure is necessary to degrade its weapons programs.
However, dozens of international law experts have signed an open letter stating that such strikes may amount to war crimes under the 1949 Geneva Conventions, which forbid attacks on objects "indispensable to the survival of the civilian population."
The war, which began on February 28 with joint U.S.-Israeli attacks on Iran, has seen Tehran retaliate by striking oil facilities across the Gulf and launching attacks on Israel. This has shaken global markets and sent U.S. gasoline prices above $4 a gallon.
The last major disruption in the Strait of Hormuz, during the Iran-Iraq war in the 1980s, led to a sustained period of elevated energy prices and significant global economic disruption. Washington's current strategy appears to be a high-stakes gamble to force Tehran's capitulation before the economic blowback becomes untenable.
This article is for informational purposes only and does not constitute investment advice.
