• President Trump escalates rhetoric, vowing to destroy remaining Iranian missiles and systems unless a diplomatic deal is secured.
  • The threat rattles global oil markets, with crude prices surging on fears of broader conflict.
  • No immediate response from Tehran, but tensions risk spiraling into open confrontation.

Escalating Threats

President Donald Trump issued a stark ultimatum on Tuesday, warning that the United States would "knock out the rest of the missiles and systems" if Iran does not agree to a new nuclear deal. Speaking to reporters at the White House, Trump doubled down on his maximum pressure campaign, stating that without a deal, the US would take decisive military action.

“We’ve done a lot already, but if they don’t come to the table, we will finish the job,” Trump said, according to people familiar with the matter. “The rest of their missiles and systems will be gone.”

The remarks come amid stalled negotiations over Iran’s nuclear program, with European intermediaries struggling to broker a framework. A senior administration official, speaking on condition of anonymity, confirmed that the White House is prepared to authorize strikes on Iranian missile sites if talks collapse within weeks.

Market Jitters

Oil prices spiked more than 3% on Wednesday morning, with Brent crude topping $92 a barrel, as traders priced in the risk of supply disruptions in the Strait of Hormuz. Defense stocks also rallied, with Lockheed Martin and Raytheon seeing gains of 2% and 1.5%, respectively.

“The market is on edge. A direct US-Iran confrontation could knock out a significant chunk of global oil supply,” said an energy analyst at a major bank. “This is the kind of headline that moves markets in real time.”

Iran’s Calculus

Iran’s mission to the United Nations did not immediately respond to requests for comment. However, state media dismissed Trump’s threat as "bluster" while reaffirming Tehran’s right to self-defense. Analysts warn that a miscalculation could spiral: Iran has previously threatened to blockade the Strait of Hormuz if attacked.

Diplomatic Window Narrowing

European envoys have been shuttling between Washington and Tehran in a bid to salvage a deal, but progress has been slow. “Without a realistic diplomatic path, the risk of military action is higher now than at any point in the last two years,” said a European diplomat familiar with the talks.

Trump’s warning echoes his 2020 order to kill Qassem Soleimani, which nearly led to open war. Critics argue the administration’s strategy is reckless. “You can’t bomb your way to a deal,” said a former State Department official. “This is a recipe for escalation.”

Correction: An earlier version of this article incorrectly stated that Trump threatened to use nuclear weapons. The President referred only to conventional strikes.