Iran Trades Threats with Trump

Iran said on Sunday it would strike the energy and water systems of its Gulf neighbours in retaliation if U.S. President Donald Trump follows through with a threat to hit Iran's electricity grid in 48 hours, escalating the three-week-old war.

The prospect of tit-for-tat strikes on civilian infrastructure could deepen the regional crisis and further rattle global markets when they reopen on Monday morning.

Air raid sirens sounded across Israel from the early hours of Sunday, warning of incoming missiles from Iran, after scores of people were hurt overnight in two separate attacks in the southern Israeli towns of Arad and Dimona.

The Israeli military said hours later that it was striking Tehran in response.

Trump threatened overnight to "obliterate" Iran's power plants if Tehran did not fully reopen the Strait of Hormuz within 48 hours, barely a day after he talked about "winding down" the war. He made the new threat as U.S. Marines and heavy landing craft are heading to the region.

But while attacks on electricity could hurt Iran, they would be potentially catastrophic for its Gulf neighbours, which consume around five times as much power per capita. Electricity makes their gleaming desert cities habitable, and most of them produce nearly all of their drinking water by purifying it from the sea.

Iran's Parliament Speaker Mohammad Baqer Qalibaf wrote on X that critical infrastructure and energy facilities in the Middle East could be "irreversibly destroyed" should Iranian power plants be attacked.

Iran's powerful Revolutionary Guards said it would also mean the shipping lane where a fifth of global oil and liquefied natural gas normally transits along Iran's southern coast would remain shut.

"The Strait of Hormuz will be completely closed and will not be opened until our destroyed power plants are rebuilt," the Guards said in a statement.

More than 2,000 people have been killed during the war the U.S. and Israel launched on February 28, which has upended markets, spiked fuel costs, fuelled global inflation fears and convulsed the postwar Western alliance.

'TICKING TIME BOMB OF ELEVATED UNCERTAINTY'

"President Trump's threat has now placed a 48-hour ticking time bomb of elevated uncertainty over markets," said IG market analyst Tony Sycamore, who expects stock markets to fall when they reopen on Monday.

Oil prices jumped on Friday, ending the day at their highest in nearly four years.

Markets already under severe strain from blockaded shipping were further rattled last week when Israel attacked a major gas field in Iran, and Tehran responded with strikes on neighbours Saudi Arabia, Qatar and Kuwait, raising the prospect of damage hindering energy output even if tankers resume sailing.

Iranian attacks have effectively closed the Strait of Hormuz, causing the worst oil crisis since the 1970s. Its near-closure sent European gas prices surging as much as 35% last week.

"If Iran doesn't FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!" Trump posted on social media around 7:45 p.m. EDT (2345 GMT) on Saturday.

Iranian media quoted the country's representative to the International Maritime Organisation as saying the strait remains open to all shipping except vessels linked to "Iran's enemies".

Ali Mousavi said passage through the waterway was possible by coordinating security and safety arrangements with Tehran.

Ship-tracking data shows some vessels, such as Indian-flagged ships and a Pakistani oil tanker, have negotiated safe passage through the strait. But the vast majority of ships have remained holed up inside.

Iran's Khatam al-Anbiya military command headquarters said on Sunday if the U.S. hit Iran's fuel and energy infrastructure, Iran would attack all U.S. energy, information technology and desalination infrastructure in the region.

Striking major Iranian power plants could trigger blackouts, crippling everything from pumps and refineries to export terminals and military command centres.

IRAN EXPANDS RISKS WITH LONG-RANGE MISSILES

The United States and Israel say they have seriously degraded Iran's ability to project force beyond its borders with their three weeks of intensive air strikes.

But Tehran fired its first known long-range ballistic missiles with a range of 4,000 km (2,500 miles) on Friday towards a U.S.-British Indian Ocean ‌military base, expanding the risk of attacks beyond the Middle East.

An Iranian strike also landed near Israel's secretive nuclear reactor about 13 km (8 miles) southeast of the city of Dimona.

The war has been taking place alongside a confrontation on a separate front between Israel and Lebanon's Hezbollah, backed by Iran, with Israel saying on Sunday its troops had raided a number of the armed group's sites in southern Lebanon.

Hezbollah said it had attacked several border areas in northern Israel. Israeli emergency services said one person was killed in a kibbutz near the border. Israel later said it was checking whether the death was caused by Israeli fire.

Hezbollah has fired hundreds of rockets at Israel since it entered the regional war on March 2, prompting an Israeli offensive that has killed more than 1,000 people in Lebanon.

Israel said it had instructed the military to accelerate the demolition of Lebanese homes in "frontline villages" to end threats to Israelis, and to destroy all bridges over Lebanon's Litani River which it said were used for "terrorist activity".

Pope Leo appealed for an end to the conflict. "The death and suffering caused by this war are a scandal to the whole human family," he said.

A Reuters/Ipsos poll conducted last week found 59% of Americans disapprove of U.S. strikes against Iran, while 37% approved. The war has become a major political liability for Trump ahead of November elections for Congress.

JAPAN MULLS MINESWEEPING, HYPOTHETICALLLY SPEAKING

Japan could consider deploying its military for minesweeping in the Strait of Hormuz if a ceasefire is reached, Foreign Minister Toshimitsu Motegi said on Sunday.

"If there were to be a complete ceasefire, hypothetically speaking, then things like minesweeping could come up," Motegi said during a Fuji TV program. "This is purely hypothetical, but if a ceasefire were established and naval mines were creating an obstacle, then I think that would be something to consider."

Japan's military actions are limited under its postwar pacifist constitution, but 2015 security legislation allows Japan to use its Self-Defense Forces overseas if an attack, including on a close security partner, threatens Japan's survival and no other means are available to address it.

Tokyo has no immediate plans to seek arrangements to allow passage through the Strait of Hormuz for stranded Japanese vessels, Motegi said, adding it was "extremely important" to create conditions that allow all ships to navigate through the narrow waterway, the conduit for a fifth of the world's oil shipments.

Iranian Foreign Minister Abbas Araqchi told Japan's Kyodo news agency on Friday that he had spoken to Motegi about potentially letting Japanese-related vessels pass through the strait.

Japan gets around 90% of its oil shipments via the strait, which Tehran has largely closed during the war, now in its fourth week. A spike in global oil prices has prompted Japan and other countries to release oil from their reserves.

U.S. President Donald Trump met Japanese Prime Minister Sanae Takaichi on Thursday, urging her to "step up" as he presses allies - so far unsuccessfully - to send warships to help open the strait.

Takaichi told reporters after the Washington summit that she had briefed Trump on what support Japan could and could not provide in the strait under its laws.

(Reuters)