Markets on edge as US-Iran standoff threatens Gulf energy infrastructure

Donald Trump, United States President has warned Iran that time is running out to reach an agreement to halt the spiralling conflict in the Middle East, as reports emerged that Washington and Israel could be preparing strikes on Iranian energy infrastructure.

“For Iran, the clock is ticking, and they better get moving, fast, or there will not be anything left of them,” Trump wrote on his Truth Social platform on Monday. “Time is of the essence.”

Read also: Iran war reignites inflation pressures across Africa’s biggest economies in April

The remarks came amid rising fears that the conflict could spread across the Gulf region, threatening critical oil facilities and raising fresh concerns over global energy supplies.
Iran swiftly responded to Trump’s warning.

Reza Talaei Nik, spokesperson for Iran’s Ministry of Defence, said Tehran’s armed forces were fully prepared for any further military action by the United States or Israel.

“The armed forces are fully prepared to confront any new potential attack by the US and the Israeli regime against the country,” Talaei Nik said.

The latest escalation followed reports of drone attacks targeting strategic sites in the Gulf. The United Arab Emirates said a drone strike struck an electrical generator outside the inner perimeter of the Barakah Nuclear Energy Plant, causing a fire but no injuries or radioactive leak.

Read also: WORLD IN BRIEF: Iran wants BRICS to condemn US, Washington boosts UN aid, Kenya fuel prices surge and other stories

According to Reuters, the Abu Dhabi Media Office said radiological safety levels at the plant remained unaffected, while the UAE’s Federal Authority for Nuclear Regulation confirmed there had been no release of radioactive material.

The UAE Ministry of Defence said two additional drones launched from the country’s western border were intercepted before reaching their targets. Authorities did not identify who launched the drones.

Saudi Arabia also reported intercepting three drones that entered its airspace from Iraq. Riyadh warned that it would take “necessary operational measures” against any threat to its sovereignty and security.

The deteriorating security situation has rattled global oil markets. Stalled diplomatic efforts between Tehran and Washington pushed Brent crude prices to around $111 per barrel on Monday, close to recent highs, as traders feared possible disruptions to energy supplies passing through the Gulf.

Read also: World Cup: FIFA, Iran hold talks over Team Melli’s participation in U.S

Mohsen Rezaei, a senior member of Tehran’s Expediency Council and former commander of Iran’s Islamic Revolutionary Guard Corps, accused Washington of tightening pressure on Iran through what he described as a blockade of Iranian ports.

Speaking on Iranian state television, Rezaei warned that Iran’s military was prepared for a broader confrontation if tensions continued to escalate.

Meanwhile, Russia signalled growing concern over the crisis. Mikhail Ulyanov, Moscow’s envoy to international organisations in Vienna, suggested in a post on X that Iran appoint a special envoy to Russia, similar to the arrangement Tehran maintains with China.

The latest developments underline growing fears that the conflict between Iran, Israel and the United States could evolve into a wider regional crisis, drawing in Gulf states and threatening one of the world’s most critical energy corridors.