After markets rattle, Trump once again punts on following through with threat on Iran power plants
WASHINGTON (AP) — We are facing a shocking stock market, President Donald Trump moved on Thursday to buy himself more time and once again delay implementing a plan. threat of destruction Following the de facto closure of Iran’s power plants by the Islamic Republic Strait of Hormuz.
Trump said he is delaying taking possible steps because he aims to end the talks conflict Iran is doing “very well” as it continues to advance publicly insist Doesn’t negotiate with the White House 15-item recommendation – Delivered by Pakistani intermediaries – to end the war. He said Iran requested additional time.
“They wanted seven days,” Trump said in his speech on Fox News Channel’s The Five program, shortly after announcing on social media that he would give Iran until April 6 to reopen the strait. “And I said, ‘I’ll give you a 10.'”
Trump announced his decision shortly after Wall Street closed on Thursday; This was another difficult day. US stock markets suffer their biggest loss Since the war with Iran started. The S&P 500 fell 1.7%, the Dow Jones Industrial Average fell 469 points, or 1%, and the Nasdaq composite fell 2.4%, more than 10% below its all-time high from earlier this year.
Embers First person to threaten to bomb Iran’s energy facilities on Saturday – and almost immediately began to become unstable.
In his first threat, he gave Tehran 48 hours to open the strait, a chokepoint for global oil markets. But he withdrawn on Mondaysaying you will give Five more days for Iran Following the volatility of Asian markets. He then gambled again after Thursday’s shaky markets.
Trump’s decision follows a pattern
This wasn’t the first time Trump had to adjust policy in the face of market volatility.
Following the imposition of new tariffs last April, which triggered the S&P 500’s worst two-day sell-off in five years, Trump Announced a 90-day break The heaviest tariffs for all countries except China.
But on Thursday, Trump bristled at the idea that his team was struggling to find an end to the conflict. Speaking to reporters as he met with his Cabinet, he insisted that Iran had already been “decisively defeated.”
“We are having very important conversations with the right people regarding Iran,” Trump said.
Iran had effectively encouraged Trump to address the threat and warned that it would retaliate against the region’s vital infrastructure. desalination plants for drinking water, If the USA or Israel hits power plants. Iran has also tightened its grip on the strait as it seeks to create something similar. “box office” For tankers to pass through the narrow waterway.
Markets’ uncertain reaction to Trump’s strait red line has left the White House on the hook to shape the narrative of the war, while global investors worry about whether and how the president can do it. end the war and reopening the critical waterway through which approximately 20% of the world’s oil passes each day.
Trump warns Iranian negotiators to ‘get serious’
Earlier Thursday, Trump claimed he had not decided whether to give Iran more time to fully open the strait. He said it would depend on what his negotiators — envoy Steve Witkoff, son-in-law Jared Kushner and Vice President J.D. Vance — let him know about the status of broader talks to end the war.
Trump also insisted that Tehran was “begging” for a deal, while also encouraging Iran’s negotiators to “get serious soon, before it’s too late.”
Witkoff said the administration is focused on convincing Iran that “this is a tipping point for them with no good alternative but more death and destruction.”
New York real estate developer turned diplomat He told Trump’s Cabinet that the administration was receiving “strong signs” that peace was possible and said “Iran is looking for a way out” following Trump’s threat against power plants.
White House downplays war’s impact on economy
Meanwhile, Trump and his top aides have tried to downplay the impact of the crisis. Price shock at gasoline pumps For consumers in Asia, Europe and the United States.
“I thought oil prices would go up further and the stock market would fall further,” Trump said. “It wasn’t as severe as I thought it would be. I think maybe they trust the American president and maybe they trust the people sitting around this table.”
Trump downplayed its importance organizing a coalition of partners He said that the USA “has too much oil, our country will not be affected by this” and that they are making efforts to help protect tankers passing through the Bosphorus.
While it is true that the United States is not dependent on resources passing through the Strait, the price of oil is determined by the global market. there is this Prices increased at the pump For drivers around the world, including the United States, where the average price of gas nationwide is up more than a dollar from just a month ago.
Treasury Secretary Scott Bessent said Iran was “trying to seize control of the global economy through a blockage that we believe does not exist” by restricting oil and natural gas passing through the strait.
Bessent’s statement was misleading, as the strait is particularly critical for Asia and energy prices have risen since the start of the war with Iran.
He expressed optimism that more tankers could pass through the Strait of Hormuz. “I am confident that even before we secure the strait, shipping traffic will continue to increase daily,” Bessent said.
Meanwhile, Trump continues to send more troops to the region
Trump continues to work to shift more troops to the Middle East as the White House insists progress is being made in finding an end to the conflict.
Pentagon is preparing to send at least 1,000 soldiers to the region The Army’s elite 82nd Airborne Division It was used to support operations against Iran, the AP reported earlier this week. The deployment will consist of approximately 5,000 Marines shifted to the Middle East. These forces exceed the 50,000 US forces currently in the region.
The influx of Marines and soldiers has fueled speculation that Trump is positioning troops to conduct at least limited ground strikes to secure or seize the strait shores. Kharg IslandIt is a critical part of Iran’s oil industry.
U.S. ground forces could certainly capture Kharg and help secure the strait, but the price could be a war of attrition with a heavy price in American lives and taxpayer money, defense experts say.
“Yes, we could do that, but the question is can we do that, right?” said Mick Mulroy, a former deputy assistant secretary of defense now at the Middle East Institute in Washington. “Should we do this? And the best way out will be diplomacy. I know it’s easier said than done, but diplomacy and negotiations only work when both sides are willing to compromise.”
Trump also announced on Thursday that Iran allowed many Pakistani-flagged tankers to pass through the strait. This was something he hoped was a sign of good faith for the negotiations.
“I think we’re dealing with the right people,” Trump said.
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AP writers Josh Boak, Darlene Superville, Collin Binkley and Meg Kinnard contributed to this report.
