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Trump's Iran Ultimatum Sends Oil Markets Higher as Tensions Escalate

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President Trump ratcheted up pressure on Iran Sunday, warning on social media that the 'clock is ticking' and Tehran must act quickly to avoid renewed conflict. The president's ultimatum comes as negotiations over Iran's nuclear program remain stalled, with Iran rejecting U.S. demands to scale back uranium enrichment.

Oil markets have responded sharply to the escalating rhetoric, with prices climbing on fears that Iran could again block the Strait of Hormuz. The waterway handles roughly 20% of global petroleum liquids, making any disruption a major supply shock for international energy markets. Shipping companies have already rerouted vessels, adding transit time and costs.

The Pentagon is preparing for a potential resumption of Operation Epic Fury, with U.S. and Israeli forces conducting their largest military buildup since the February cease-fire. Military analysts question whether air strikes alone can force Iranian compliance, while special forces raids on nuclear facilities carry significant risk to American personnel.

Iran delivered another counterproposal through Pakistani mediators, though officials signaled readiness to retaliate against any renewed attacks. The stalemate reflects Trump's challenge in leveraging economic pressure without triggering the very conflict he seeks to avoid.