Iran Rejects Trump's Hormuz Ultimatum, Threatens Wider Trade Disruption

Iran has firmly pushed back against U.S. President Donald Trump's latest threats over the Strait of Hormuz, dismissing his ultimatum and introducing new conditions that could further destabilize global trade routes. The standoff signals a deepening crisis with potentially far-reaching economic consequences.

Parliamentary Speaker Mohammad Bagher Qalibaf publicly rejected Trump's warning of military strikes on Iranian infrastructure, calling the threats "reckless" and urging Washington to respect Iranian sovereignty instead. "The only real solution is respecting the rights of the Iranian people and ending this dangerous game," Qalibaf wrote on X, making clear that Tehran has no intention of yielding to pressure.

Iran also attached a new financial condition to any potential reopening of the strait. Presidential spokesperson Seyyed Mohammad Mehdi Tabatabaei stated that resuming transit through Hormuz would require allocating a portion of shipping revenues as compensation for war-related damages — a demand that significantly raises the bar for any diplomatic resolution.

Beyond the Persian Gulf, senior Iranian officials are now warning that the conflict could spill into another critical global chokepoint. Ali Akbar Velayati, a close adviser to Supreme Leader Ali Khamenei, threatened that the "resistance front" could target the Bab el-Mandeb Strait in the Red Sea — a waterway responsible for approximately 12% of global trade and previously disrupted by Iran-aligned Houthi forces in Yemen. Any interference there would compound already surging oil and gas prices triggered by the near-shutdown of Hormuz traffic.

Trump had set a Tuesday deadline for Iran to reopen the strait, threatening to destroy Iranian power plants and infrastructure if it failed to comply. While he suggested a deal could come quickly, Iran's hardening demands and expanding threats point to a prolonged and volatile standoff with serious implications for global energy markets and international trade stability.