[ANALYSIS] Iranian War Day 38: Trump warns Tuesday will be “Power Plant Day, and Bridge Day”
The recent statements from President Trump mark a significant escalation in U.S.-Iran tensions, pinpointing a deadline for Iran to negotiate regarding the Strait of Hormuz.
BoJ Osaka branch manager says smaller firms' wage talks may be affected by the Middle East conflict but no firms have indicated the conflict has hindered wage increases
BoJ Osaka officials report that earlier rate hikes have yet to have a substantial impact on corporate financing or overall business activity
[ANALYSIS] Iranian War Day 38: Trump warns Tuesday will be “Power Plant Day, and Bridge Day”
Iranian Deputy Minister of Foreign Affairs says "[US] should stop these threats - the effects of which will not be limited to Iran.", Tasnim reports
Saudi Arabia sets May Arab Light crude oil OSP to Asia at USD 19.50/bbl premium vs Oman/Dubai average (vs Bloomberg exp. of ~USD 40/bbl); a record premium, Bloomberg reports
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MAIN POINTS:
- US President Trump said there are “48 hours before all Hell will reign down”, repeated that Tuesday will be “Power Plant Day, and Bridge Day”, and set “Tuesday, 8:00 P.M. Eastern Time!” as the deadline for Iran to make a deal or open the Strait of Hormuz.
- US, Iran and regional mediators are discussing terms for a potential 45-day ceasefire, while Iran and Oman are also in active talks on managing and potentially reopening Hormuz traffic.
- Iran’s side said Hormuz will never return to normal for the US and Israel, warned of reciprocal infrastructure attacks, and said Iraqi ships and certain approved cargoes can still pass.
- Israeli defence official said preparations are being made for strikes on Iran’s energy facilities, while Israeli army said it struck regime infrastructure in Tehran and Iranian media reported explosions in Tehran, Qom, Shiraz and Karaj.
- Gulf spillover continued, with missile and drone sirens in the UAE, explosions at US-linked facilities in Abu Dhabi, and Iranian drone strikes damaging Kuwaiti power and desalination infrastructure.
- IAEA Chief Grossi said Iran still holds a substantial stockpile of highly enriched uranium, with most at Isfahan and some at Natanz, sufficient for a few warheads.
US
- US President Trump posted on Saturday that time is running out and there are “48 hours before all Hell will reign down on them”.
- US President Trump posted that “Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!!”.
- US President Trump reiterated that Iran must open the Strait or they will be living in hell.
- US President Trump posted “Tuesday, 8:00 P.M. Eastern Time!”.
- US President Trump told WSJ he will destroy all of Iran’s power plants if Iran’s leaders do not agree to reopen the Strait by Tuesday evening.
- US President Trump said “I will let you know pretty soon” when asked when he thinks the war will end.
- US President Trump told Fox News he believes he can get a deal with Iran by Monday and said Iran is negotiating now.
- US President Trump also said he would ideally take Iranian oil if Iran is unwilling to make an agreement.
- US President Trump told Axios the US is “in deep negotiations” with Iran and that a deal can be reached before the Tuesday deadline expires.
- US President Trump added that if they do not make a deal, he is “blowing up everything over there”.
- US President Trump told The Hill he is not ruling out ground troops in Iran if Tehran does not make a deal.
- US President Trump said “If they were smart, they would make a deal”.
TALKS
- US, Iran and a group of regional mediators are discussing terms for a potential 45-day ceasefire that could lead to a permanent end to the war.
- Iran was reported on Friday to have rejected a US proposal for a 48-hour ceasefire.
- The proposal was made on Wednesday through another country. (reported)
- Iran and Oman are in active talks to manage and potentially reopen maritime traffic through the Strait of Hormuz.
- Officials met on Saturday to discuss practical options.
- An Arab diplomat involved in contacts between Iran and the US said the Iranian regime believes it can continue the fighting and end the war on better terms.
IRAN
- Iranian Parliament Speaker Ghalibaf said the whole region is going to burn because US President Trump insists on following Israeli PM Netanyahu’s commands.
- Iranian Foreign Ministry spokesperson said Iran will reciprocate attacks on its infrastructure and will target similar infrastructure owned by the US or related to it.
- IRGC warned that if US President Trump’s threats to target Iran’s infrastructure are carried out, Iran’s armed forces will target all Israeli and American assets and those of host countries with even greater and more crushing force
- IRGC said the Strait of Hormuz will never return to normal for the US and Israel.
- IRGC added the IRGC Navy is preparing operations for a new order in the Persian Gulf.
- IRGC also said they hit an Israeli ship in the channel of the UAE’s Jebel Ali port.
- Iran’s military said Iraqi ships can travel through the Strait of Hormuz, with Iraq exempt from shipping restrictions.
- Iran approved the passage of ships carrying essential goods to Iranian ports through the Strait of Hormuz. (
- A Petronas-chartered tanker loaded with Iraqi crude passed through Hormuz.
- Fars said 15 ships had passed through Hormuz in 24 hours with permission from Iran on Sunday evening.
MILITARY
- US rescued the second crew member from a downed F-15 in Iran.
- US President Trump told NBC News on Friday that the downing of the US jet will not affect Iran talks.
- US has deployed most of its JASSM-ER long-range stealth cruise missiles for the Iran war.
- US is doubling to USD 40bln its commitment to provide reinsurance guarantees to ships that travel through the Strait of Hormuz.
- It was reported that the CIA spread disinformation during efforts to recover the second pilot from the downed F-15, with the airman scaling a 7,000ft mountain ridge and hiding in a crevice.
- An Iranian military spokesman claimed that several US aircraft were hit during this operation and that America bombarded its own planes “to prevent embarrassment for President Trump”.
ISRAEL
- Israeli defence official said they are making preparations for strikes on Iran’s energy facilities and awaiting the go-ahead from the US.
- The strikes would likely come in the week ahead.
- Israeli army said it conducted a wave of strikes targeting infrastructure belonging to the Iranian regime in Tehran.
- Iran announced explosions in Tehran and Qom.
- Iranian media reported an explosion in Shiraz early Monday morning.
- Iranian media also reported dozens of successive explosions in the city of Karaj.
- Strikes caused a temporary gas outage in the Sharif neighbourhood and hit a gas station near Sharif University in Tehran.
- Iran fired multiple waves of missiles towards Israel.
- Air raid sirens sounded in 186 locations in Tel Aviv, the coastal plain and southern Negev after detecting missiles allegedly originating from Iran. (
NUCLEAR
- IAEA Chief Grossi said Iran possesses a substantial stockpile of highly enriched uranium nearing military grade.
- Grossi said the majority is located at Isfahan and some at Natanz.
- Grossi said it is sufficient for the production of a few warheads.
GULF
- Missile and drone warning sirens were active in the UAE, with defence systems activated.
- Explosions were reported at US-linked facilities in Abu Dhabi.
- Injuries were reported from falling debris in the UAE.
- Kuwait’s government announced that two power and water desalination plants were struck by Iranian drones.
- The strikes resulted in significant damage and two power generation units out of service.
- Kuwait Petroleum Corp’s headquarters caught on fire following an unmanned drone strike.
- Bahrain urged the UN to pass a resolution to reopen the Strait of Hormuz by force.
- The UK’s Ministry of Defence said it was involved in downing “multiple Iranian drones”.
OTHER
- China’s Foreign Minister Wang Yi said China is ready to cooperate with Russia to ease Middle East tensions.
- India’s Foreign Minister had a teleconference on the ongoing conflict in the Middle East with Qatar’s PM and Foreign Minister.
This rhetoric, coupled with military preparations and ongoing hostilities, suggests a heightened risk of conflict that could disrupt oil supplies and regional stability, impacting various assets including energy prices and safe-haven currencies. Traders should be vigilant regarding potential market volatility as the deadline approaches and implications for broader regional dynamics unfold.
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