Trump Gives Iran 1 Ultimatum as Oil Soars Above $109

A fragile ceasefire between the US and Iran is under severe strain after a weekend drone attack on a United Arab Emirates nuclear power plant and an ultimatum from President Donald Trump that his patience for a peace deal is running out, sending oil prices surging.

“The United States, offering no tangible concessions, wants to obtain concessions that it failed to obtain during the war, which will lead to an impasse in the negotiations,” the Iranian Mehr news agency reported Sunday, signaling Tehran’s rejection of Washington’s latest proposal.

The heightened risk of renewed conflict pushed Brent crude futures up $3.54, or 3.35 percent, to settle at $109.26 a barrel, while US West Texas Intermediate futures climbed 4.2 percent to $105.42. Brent has gained over 7.8 percent for the week, adding to a roughly 50 percent surge since the war began on Feb. 28 and disrupted global energy flows.

With talks at an impasse, the White House faces a conundrum ahead of the November midterm elections: how to reopen the vital Strait of Hormuz and lower energy prices without making major concessions to Tehran. Trump is expected to meet with his national security team on Tuesday to discuss military options, according to an Axios report. “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them,” Trump posted on his Truth Social platform Sunday after a call with Israeli Prime Minister Benjamin Netanyahu.

The diplomatic deadlock centers on irreconcilable demands. The US has reportedly required Iran to transfer its entire stockpile of highly enriched uranium to America and keep only one nuclear site operational, while refusing to release the majority of Iran’s frozen assets or pay reparations, according to Iran’s Fars news agency. Tehran, in turn, has demanded a complete lifting of the US naval blockade and all sanctions before it will even begin to negotiate on its nuclear program.

Tensions escalated dramatically on Sunday when a drone strike sparked a fire in an electrical generator on the perimeter of the UAE’s Barakah Nuclear Power Plant. While the attack caused no injuries or radiological release, it marked a significant and dangerous new phase in the conflict. The UAE’s defense ministry said it intercepted two other drones that entered its airspace from the “western border direction.” Anwar Gargash, a UAE presidential adviser, condemned the “terrorist targeting” as a “dangerous escalation.”

The attack on the Arabian Peninsula’s first and only nuclear power plant, which provides a quarter of the UAE’s electricity, drew immediate condemnation from the International Atomic Energy Agency, which expressed “grave concern.”

The crisis has drawn in global powers, with Pakistan’s interior minister visiting Tehran to mediate talks. Trump recently returned from a trip to China where he discussed the war with President Xi Jinping, a key ally of Iran. Trump said Xi agreed on the need to reopen the Strait of Hormuz, which handled a fifth of the world’s oil supply before Iran’s effective closure of the waterway triggered the worst supply crisis in history. However, with Washington and Tehran remaining far apart on a deal, the risk of the conflict restarting and sending energy prices even higher remains acute.

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