Iran threatens to destroy Middle East infrastructure after Trump ultimatum

22nd Mar 2026 17:04

(Sharecast News) - Iran has threatened to "irreversibly destroy" energy infrastructure across the Middle East after Donald Trump said the US would "obliterate" the country's power plants if it did not reopen the Strait of Hormuz within 48 hours.

In a Truth Social post late on Saturday night, Trump said the US would destroy Iran's "various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!". The US president's threat came just a day after he said he was considering "winding down" the war.

Iran's Revolutionary Guards threatened to completely close the Strait of Hormuz if Trump follows through on his threat.

The Iranian president's speak, Mohammad Bagher Ghalibaf, said on Sunday: "Immediately after power plants and infrastructure in our country are targeted, vital infrastructure as well as energy and oil infrastructure across the entire region will be considered legitimate targets and will be irreversibly destroyed."

He said oil prices would then "rise for a long time".

The vital Strait of Hormuz, through which around 20% of the world's oil supply is normally transported, is now deemed too difficult to pass, leaving numerous tankers stranded at sea.

Neil Wilson, UK investor strategist at Saxo Markets, said: "The war is entering a new phase of escalation and markets are finally starting to wake up to the gravity of the potential for long-term impact on energy markets.

"I've repeatedly stressed that markets were under-pricing the risks for a variety of reasons and showed a degree of complacency about the war, but the selloff into Friday's close indicated that markets are starting to take notice.

"The S&P 500 finally tested the 6,500 area. I now think we can easily retest 5,600 following the breach of the 200-day line. Brent is likely to make a new wartime high could spike north of $130, with front month futures perhaps even touching $150.

"Now developments over the weekend mean we are entering a new and very dangerous phase for financial markets."

Wilson said there will likely be more heavy losses as markets open on Monday after Trump's ultimatum. He also said the odds of a US attack on Kharg Island - Iran's vital oil hub - are "shortening by the hour".

"This is an escalatory doom loop - or 'escalation trap' with currently no realistic off-ramp," Wilson said. "Neither side has an incentive to back down as the costs of doing so are increasing day by day. Each side thinks pushing harder will force the other to back down."

He noted that last week's strikes on energy infrastructure - particularly Iran's South Pars gas field and Qatar's Ras Laffan LNG complex - marked a significant gear-change in the conflict and markets responded accordingly.

"Ras Laffan is material to global LNG supply and will reduce capacity for a long period," he said. "Short-term volatility in energy markets from the disruption is now turning into lost capacity, which has longer-term consequences and implications for energy pricing, inflation and growth."