Iran boosts readiness as Trump cancels strike on 5-month war

Iran's acting defence minister said Tehran will treat every threat from adversaries as "real and credible," vowing to boost military readiness as President Donald Trump cancelled a planned strike subject to a rapid deal.

"We are neither surprised nor passive; we use the threat as the basis for increasing our readiness, strengthening deterrence, and enhancing our power," Brigadier General Seyyed Majid Ibn al-Reza said in a post on X, according to Iran's ISNA news agency.

Trump announced Saturday he had cancelled the attack after Middle Eastern allies reached the parameters of a deal that would include the "Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT" and an end to Iran's nuclear threat. The Strait of Hormuz handles roughly 21 percent of global oil trade, making any disruption a direct risk to crude prices and energy markets worldwide.

The pause is conditional on Tehran's readiness to rapidly finalize a binding treaty, with Trump warning the US remains "locked and loaded." A failure to reach a deal could reignite a conflict that has already lasted five months, disrupted shipping through the world's most critical energy chokepoint, and triggered US State Department security alerts for Americans in 10 regional countries. The White House has framed the pause as a diplomatic window, but the military threat remains explicit.

Ibn al-Reza's remarks came as Saudi Crown Prince Mohammed bin Salman raised concerns in a phone call with Trump about potential US escalation, according to a person familiar with the discussion. The Saudis fear Tehran could respond with attacks on the energy infrastructure of the kingdom and other Gulf countries. The crown prince sought clarity on what potential new action the US was considering against Iran, the source said.

Kuwait's military said Saturday its forces were responding to drone attacks that hit "a number of vital facilities," including a government structure in the country's north. The British Navy reported a tanker was struck and a separate explosion hit close to a vessel in the Strait of Hormuz off the coast of Oman. The United Kingdom Maritime Trade Organisation said an unknown projectile hit a vessel on Friday, 11 nautical miles north-east of Lima, damaging its engine room.

Deal Parameters and the Hormuz Chokepoint

Trump's announcement hinges on two concessions from Tehran: the unhindered opening of the Strait of Hormuz to re-establish international maritime traffic, and an enforceable end to Iran's nuclear advancement programme. The president said Israel had joined the US commitment to complete the agreement. "Get to work, everybody, and get it DONE," Trump urged stakeholders, leaving the ball in the court of negotiators to translate the framework into a binding treaty.

The last time the Strait of Hormuz faced sustained disruption was during the 2019 tanker attacks, when Brent crude spiked more than 14 percent in a single session. The current conflict, now in its fifth month, has already seen Iran repeatedly attack vessels attempting to transit without its authorisation, according to the Associated Press. Satellite images reviewed by the AP also show crude oil leaking from a sanctioned tanker grounded off the coast of Oman, close to a marine protected area.

Regional Fallout and Market Risk

The US State Department issued new security alerts for Americans in 10 countries — Bahrain, Israel, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia and the United Arab Emirates — urging citizens to prepare for flight cancellations, temporary airspace closures and other travel disruptions.

Separately, Israel carried out heavy strikes on the Gaza Strip after Hamas confirmed it would disarm in a potential breakthrough for ending the war there. The strikes killed at least four people in central and northern Gaza, according to local health officials. Israeli far-right lawmaker Itamar Ben-Gvir called the deal "unacceptable" and said the killings in Gaza must continue.

For energy markets, the key variable is whether the deal framework holds. If negotiations collapse, crude prices could price in a renewed supply risk premium through the Hormuz chokepoint, with Gulf producers most exposed to retaliatory strikes. If a binding treaty emerges, the removal of the shipping disruption risk could ease pressure on global energy prices and support risk assets. The next few days will determine which scenario plays out, with Trump's "locked and loaded" posture leaving little room for extended diplomacy.

This article is for informational purposes only and does not constitute investment advice.