Trump Calls for Iran’s Total Capitulation as Crude Prices Spike and Markets Tremble

TLDR

• President Trump announced the U.S. will demand “unconditional surrender” from Iran, rejecting any possibility of diplomatic negotiations
• Brent crude surged to $90 per barrel for the first time in almost two years amid complete disruption of Strait of Hormuz shipping
• Global shipping leader Maersk suspended two major container routes between Asia and Europe citing regional security concerns
• Airlines have scrapped more than 23,000 flights to Middle Eastern destinations since hostilities commenced on February 28
• Qatar issued warnings that Gulf region energy producers may be forced to halt production within weeks if hostilities persist

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President Trump stated Friday that the United States will demand nothing short of “unconditional surrender” from Iran, dismissing the prospect of peace negotiations as the joint U.S.-Israeli military operation reached its seventh consecutive day.

In a statement shared via Truth Social, Trump indicated that the United States and allied nations intend to participate in selecting “a great and acceptable leader” for Iran following the conclusion of hostilities.

Hostilities commenced on February 28, following coordinated U.S. and Israeli airstrikes that resulted in the death of Supreme Leader Ali Khamenei. Iran’s Assembly of Experts is now tasked with selecting his replacement, with Khamenei’s son Mojtaba widely viewed as the leading candidate. Trump dismissed Mojtaba as a “lightweight” and declared such an appointment would be “unacceptable.”

Casualties in Iran have reached at least 1,332 since operations began. Six American service members have also perished, all during the initial 48 hours of combat. Approximately a dozen nations are now engaged in the conflict in various capacities.

Overnight Thursday into Friday, Iran launched drone and missile attacks targeting multiple Gulf nations. Bahrain, Saudi Arabia, Kuwait, and Dubai all faced incoming strikes. A fire erupted at Bahrain’s Sitra refinery following a direct hit. Qatari officials reported successfully intercepting an assault on Al Udeid Air Base, which hosts U.S. military operations.

Oil Prices Surge as Strait of Hormuz Stalls

[[LINK_START_0]]Brent crude[[LINK_END_0]] contracts climbed to the $90 per barrel threshold for the first time since early 2023. Maritime traffic through the Strait of Hormuz has effectively ceased, compelling energy exporters to establish alternative shipping corridors.

Kuwait has initiated production reductions at several oil fields after exhausting available storage capacity. Qatar’s energy minister cautioned that Persian Gulf oil producers might be compelled to cease operations entirely within several weeks should the conflict continue. Saudi Arabia has redirected crude oil shipments to Red Sea terminals to maintain export flows.

Denmark-based shipping conglomerate Maersk halted two container shipping routes linking Far East ports with European destinations, citing security considerations.

Airlines and Bond Markets Also Hit

Over 23,000 scheduled flights to Middle Eastern aviation hubs have been cancelled since the outbreak of fighting. Emirates announced Friday its intention to restore complete network operations in the near future.

International bond markets experienced continued selloffs as escalating energy prices intensified concerns that central banks would decelerate planned interest rate reductions. The U.S. dollar tracked toward its most significant weekly appreciation since the final months of 2024.

Defense Secretary Pete Hegseth projected that military operations could extend from three to eight weeks. He emphasized that U.S. munitions stockpiles are “full up” and American military capabilities remain “overwhelming.”

Trump informed NBC Thursday that the United States seeks to “clean out” Iran’s governing apparatus, indicating regime transformation constitutes the primary objective. In comments to Politico, he asserted the U.S. possesses an “unlimited supply of weapons.”

Israeli military officials reported that airstrikes have eliminated over 60% of Iran’s ballistic missile launch capabilities. Israel has simultaneously expanded its ground military footprint in Lebanon, conducting operations against Hezbollah installations.