Speaking at the Saudi-backed Future Investment Initiative summit in Miami, Trump said, “We’re negotiating now but they have to open it up,” referring to the vital maritime route that has been largely disrupted during the war.

The Strait of Hormuz, through which roughly one-fifth of global oil supply typically passes, has seen sharply reduced traffic since the conflict began, contributing to rising energy prices and global market uncertainty.

Trump said Iran was “on the run” and repeated claims that its military and nuclear capabilities had been significantly weakened, despite Tehran’s denials.U.S. Secretary of State Marco Rubio earlier warned that Iran could seek to impose a “tolling system” on vessels transiting the strait, raising concerns over long-term disruptions to global shipping.

Trump praised Mohammed bin Salman and other Gulf leaders from the United Arab Emirates, Qatar and Bahrain for what he described as efforts to promote regional stability.Calling the Saudi crown prince a “close friend,” Trump said Riyadh had played a constructive role in ongoing diplomatic outreach.

The U.S. president also questioned Washington’s commitment to NATO, suggesting the United States might reconsider its obligations if European allies continued to withhold support in the Iran conflict.

“We would have always been there for them but now I guess we don’t have to be,” Trump said, framing the issue as one of burden-sharing within the alliance.

The conflict, now entering its fourth week, has disrupted shipping through the Hormuz corridor, with only limited vessel movement reported amid heightened security risks and ongoing military activity in the region.

The statement, issued by Iran’s foreign ministry and shared with IMO member states and non-governmental organizations, said vessels that do not “participate in or support acts of aggression” against Iran would be permitted safe passage through the strategic waterway, subject to adherence to safety and security regulations.

However, it specified that vessels, equipment, and assets belonging to what it described as “aggressor parties” including the United States and Israel would not qualify for what it termed “innocent or non-hostile passage.

”Iran said responsibility for any disruption or escalation in the Strait of Hormuz lay with Washington and Tel Aviv, accusing them of waging an “unlawful and destabilising war” that has heightened risks to international shipping and regional stability.

The statement reflects Tehran’s position as tensions remain elevated following the outbreak of war triggered by U.S.-Israeli strikes on Iran on February 28.

The Strait of Hormuz, one of the world’s most critical maritime chokepoints, has been effectively closed since the escalation, contributing to sharp increases in global oil and gas prices.

Iran’s conditional reopening for select vessels introduces limited operational clarity for commercial shipping, though the exclusion of U.S. and Israeli-linked assets underscores the continuing strategic and geopolitical risks in the region.

Speaking alongside Australian Prime Minister Anthony Albanese in Canberra, von der Leyen said the impact of the crisis was already being felt across economies through rising oil and gas prices.

“We all feel the knock-on effects on gas and oil prices on our businesses and our societies,” she said, highlighting the broader economic repercussions of prolonged instability in a region central to global energy production and transit.

Her remarks come as the Middle East conflict disrupts key supply routes and raises concerns over sustained volatility in energy markets.

The region accounts for a significant share of global oil exports, making it highly sensitive to geopolitical tensions.Von der Leyen emphasized that continued hostilities risk compounding inflationary pressures and undermining business confidence, particularly in energy-importing economies.

She urged all parties to pursue a diplomatic solution, stressing the urgency of de-escalation. “It is of utmost importance that we come to a solution that is negotiated, and this puts an end to the hostilities that we see in the Middle East,” she said.

Her comments reflect growing international concern over the broader economic fallout of the conflict, as governments and institutions monitor its impact on global trade, energy flows and financial markets.

Trump issued the warning in a social media post on Saturday, saying Washington would “obliterate” Iranian power facilities if the strategic waterway remained closed. The strait, a critical conduit for global oil flows, has been effectively shut amid the ongoing hostilities.

Iran’s military command, Khatam al-Anbiya, said any attack on its fuel and energy infrastructure would trigger strikes on U.S. and Israeli assets, including critical civilian-linked systems.

The statement, carried by state media, underscored a widening scope of potential targets beyond conventional military sites.

Iranian officials also indicated that access through the Strait of Hormuz would be restricted, with passage permitted selectively, reflecting Tehran’s control over the route during the conflict.

The escalation coincided with renewed Iranian missile barrages on Israel, including strikes near the southern cities of Dimona and Arad, close to the Negev Desert nuclear research area.

Israeli authorities said dozens were injured and residential buildings sustained heavy damage.Israeli Prime Minister Benjamin Netanyahu said the impact in Arad caused extensive destruction but no fatalities, while urging adherence to air raid warnings. Israel’s military acknowledged that some missiles were not intercepted, marking a breach in air defence coverage in the area.

Iran’s parliament speaker Mohammad Bagher Ghalibaf said the strikes indicated a shift to a new operational phase in the conflict.

The conflict has extended beyond Iran and Israel, with Hezbollah claiming responsibility for a deadly strike in northern Israel, while Gulf states reported drone and missile activity targeting energy infrastructure.

Iran also targeted the joint UK-U.S. military facility at Diego Garcia in the Indian Ocean, though officials said the strike was unsuccessful. Military assessments cited in reports suggested the possibility of longer-range capabilities or alternative launch methods, though no confirmation was provided by Tehran.

The disruption to shipping through the Strait of Hormuz has halted most tanker traffic, contributing to supply constraints and rising global energy prices. Countries including the United Arab Emirates, Britain, Germany, France and Japan have expressed readiness to support efforts to restore safe navigation through the waterway.

U.S. Central Command said earlier that strikes on Iranian coastal facilities had degraded Tehran’s ability to target vessels in the strait. Additional U.S. naval assets and personnel are being deployed to the region as part of ongoing operations.

Casualties have mounted across multiple theatres, with Iran reporting more than 1,500 deaths, while Israel, the United States and Gulf states have also recorded military and civilian losses.

Air raid sirens sounded across Israel early on Sunday, warning of incoming Iranian missiles, after dozens of people were wounded overnight in separate attacks in the southern towns of Arad and Dimona. Israel’s military said it was carrying out strikes on Tehran hours after the Iranian attacks.

Trump on Saturday warned he would “obliterate” Iran’s power plants if Tehran did not fully reopen the Strait of Hormuz within 48 hours, marking a sharp escalation a day after suggesting the conflict could be wound down.

Iran responded on Sunday by warning it would strike U.S. infrastructure, including energy facilities in the Gulf, if Washington followed through on its threat. The warning came as U.S. Marines and heavy landing craft continued moving toward the region.

The exchange of threats has heightened fears that energy installations across key Gulf producers could become direct targets, widening the conflict beyond current theatres of engagement.

The escalating the crisis has disrupted markets, pushing fuel costs higher and intensifying concerns over global inflation. Analysts said the situation has introduced acute uncertainty into financial markets already strained by supply disruptions.

“President Trump’s threat has now placed a 48-hour ticking time bomb of elevated uncertainty over markets,” said Tony Sycamore, an analyst at IG.

He warned that failure to de-escalate could trigger sharp declines in global equities and further spikes in oil prices.

Oil prices rose on Friday to their highest levels in nearly four years after Iraq declared force majeure on oilfields operated by foreign firms, Israel struck a major Iranian gas field, and Tehran retaliated with attacks on neighbouring countries including Saudi Arabia, the United Arab Emirates, Qatar and Kuwait.

Iranian actions have effectively closed the Strait of Hormuz, a narrow passage that carries around a fifth of global oil and liquefied natural gas supplies, triggering what analysts describe as the most severe oil disruption since the 1970s.

The near-closure has also driven European gas prices sharply higher, with increases of up to 35% reported last week, reflecting the strait’s central role in global energy flows.

In a social media post late on Saturday, Trump reiterated his ultimatum, saying the United States would begin targeting Iran’s power infrastructure if the waterway was not reopened “fully” and “without threat” within the specified timeframe.