Trump and Iran Maintain Defiant Postures as Oil Markets Find No Respite

On the 13th day of the conflict, both President Donald Trump and Iran's new supreme leader adopted confrontational stances, providing no relief to energy markets despite new U.S. initiatives aimed at curbing oil prices.

In a social media update on Thursday, the U.S. president stated that stopping Iran from obtaining nuclear weapons and posing a threat to the Middle East holds "far greater interest and importance to me" than the price of oil.

Mojtaba Khamenei announced that the Islamic Republic would work to keep the Strait of Hormuz effectively blockaded. In his inaugural public address since succeeding his father, he further indicated that Tehran would consider opening other battlefronts if the U.S. and Israel continue their assaults.

Oil prices surged over 9% on Thursday, with Brent crude closing above $100 for the first time since August 2022. U.S. crude futures also settled at their highest level in more than three years.

The blockage of the Strait of Hormuz has disrupted the supply of millions of barrels of oil per day, resulting in what the International Energy Agency called the largest recorded impact on global production. A series of measures from the Trump administration and other governments intended to reduce energy costs also failed to slow the rally in oil prices.

The Trump administration intends to grant temporary exemptions from a century-old maritime law that mandates the use of U.S.-built ships for transporting goods between American ports, as part of its campaign to halt soaring oil prices.

Although Trump has cited the overthrow of Iran's leadership as a goal of the military campaign, Israeli Prime Minister Benjamin Netanyahu stated on Thursday that there was no certainty the regime, which has governed for 47 years, would be toppled, even in its currently weakened condition.

"A regime is ultimately brought down from within," he told reporters during his first press conference since the war started.

After nearly two weeks of fighting, there is little indication that the Middle East conflict is nearing de-escalation. Israel initiated a new series of large-scale strikes across Iran on Thursday, while the Islamic Republic intensified its attacks on Dubai and shipping assets.

The UK Defense Secretary, John Healey, informed reporters that Iran has likely started laying mines in the Strait of Hormuz. However, Iran's deputy foreign minister refuted claims that the country was engaged in such activities.

According to a notice from UK Maritime Trade Operations, three commercial vessels were hit in the Arabian Gulf within the past 24 hours, underscoring the risk that maritime transport disruptions are widening.

"Studies have been conducted into opening other fronts where the enemy has little experience and would be highly vulnerable, and their activation will take place if the state of war persists," Khamenei said.

The new supreme leader, a 56-year-old hardline cleric, was appointed after his father, Ali Khamenei, was killed in early U.S. and Israeli attacks on February 28.

Dubai authorities reported at least two strikes on Thursday morning after residents received missile alerts overnight, highlighting the threat to the financial and tourist hub long considered a safe haven. Kuwait reported several drones fired at its international airport, causing material damage.

According to a source familiar with the matter, U.S. officials informed lawmakers that the first six days of the war with Iran cost more than $11.3 billion, marking the most detailed assessment of the campaign's expenses to date.

The U.S. and Israel have been conducting airstrikes against Iran since February 28. U.S. Central Command reported approximately 6,000 targets struck since military operations began. Tehran has retaliated with missiles and drones launched across the Gulf. Beyond unsettling energy and financial markets, the conflict has led to thousands of flight cancellations and disrupted the flow of fertilizer and other goods.

Israeli Defense Minister Israel Katz stated that the military is preparing to expand its operations in Lebanon, where it has been concurrently fighting the Iran-aligned Hezbollah militia.

Official and non-governmental agency tallies indicate that approximately 2,500 people have been killed across the Middle East since the war began.