By Eric Vandenbroeck and co-workers

Strait of Hormuz ultimatum

Deployment of US soldiers to West Asia began days before the joint US-Israeli strikes on Iran on February 28. In the bid to decapitate the Islamic regime, many high-ranking officers have been killed in the joint military operation. In the latest development, Trump has ordered the deployment of a contingent of 4,500 US sailors and Marines to West Asia, as reported by the news outlet Washington Post.

The Islamic Revolution Guards Corps (IRGC) announces execution of the 66th wave of its ongoing retaliatory Operation True Promise 4, featuring deployment of a large-scale reprisal involving multiple missile systems targeting locations across the occupied territories and US military positions in the region. In a statement on Friday, the Corps' Public Relations Office said the latest phase was carried out “successfully,” striking targets in the heart and south of the occupied territories, including the city of Tel Aviv, as well as bases of the US military in the region. Join us live to know more on this!

This comes amid the global energy crisis due to the closure of the Strait of Hormuz. Though Iran has been selective about the closure, the passage is open for a few countries, while for those countries Iran considers its “enemy”, the crucial trade route remains closed.

The contingent moving to the war zone includes an infantry battalion landing team, which will be backed by helicopters, F-35 fighter jets, and armored landing vehicles. The Pentagon has also accelerated the deployment of the 11th Marine Expeditionary Unit, according to defense officials, who were quoted by the Washington Post. While an Israeli official, who spoke on condition of anonymity, said, “Those Marines aren’t coming for decoration."

This move by America comes after Trump's 48-hour ultimatum to Iran, in which he posted, “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!”

As the crucial shipping passage controlled by Tehran remains closed, energy prices have skyrocketed. Americans have been bearing the brunt of surging gas prices after it was hiked by 33%. The president has also been facing criticism from the citizens.

Asian stocks plunge, gold wipes out 2026 gains as Trump gives Iran a 48-hour ultimatum.

Stocks sold off in Asia on March 23, and gold plummeted to wipe out its 2026 gains as the escalating Middle East conflict deepened global inflation fears.

US President Donald Trump issued a 48-hour ultimatum to Tehran to reopen the Strait of Hormuz or face strikes on its power plants, a deadline that expires on the evening of March 23 in New York. Iran responded that any such attack would prompt it to shut the vital artery for global energy flows indefinitely and target US and Israeli energy infrastructure across the region.

 

The View from India

The West Asia war has posed unexpected challenges for the nation, Prime Minister Narendra Modi acknowledged in his address in the Rajya Sabha on Monday (Mar 23). He highlighted the issues surrounding the Strait of Hormuz, stating that it is concerning as it affects India’s trade with other countries. He reiterated that the region fulfils the need for LPG and fuel requirements. He noted, “It is important that a unified voice and consensus reach the world regarding this crisis from parliament.”

PM Modi added, “India has extensive trade relations with countries at war and affected by the conflict. The region where the conflict is taking place is also an important route for our trade with other countries around the world, particularly for a large portion of our crude oil and gas needs. This region is also important for us for another reason. Nearly 1 crore Indians live and work in the Gulf countries." He also noted that the commercial ships operating in the region have a huge number of Indian crew members, and "due to these various reasons, India's concerns are naturally greater.”

And ever since the war began, over 375,000 Indian nationals have returned home safely. “From Iran, nearly 1,000 Indians have returned safely so far, of which over 700 are medical students,” PM Modi mentioned in his address.

 

Trump's new warning after Hormuz ultimatum

Analysts raised the prospect of a surge in inflation that could force central banks to hike interest rates, while the choking off of fertilizer shipments has also fanned concerns about global food security.

Japan’s Nikkei index lost 3.5 per cent at the close, South Korea’s Kospi index sank 6.5 per cent, Hong Kong’s Hang Seng Index tumbled 3.5 per cent, while the Shanghai Composite Index fell 3.6 per cent.

Spot gold plunged as much as 8.8 per cent to near US$4,100 an ounce, while gold futures were down almost 10 per cent at US$4119.10 on expectations of higher global interest rates. Gold generates no interest, so when central banks raise interest rates, investors tend to sell gold to invest in interest-yielding assets like bonds or savings accounts. Additionally, higher rates often strengthen the US dollar, making gold costlier for foreign buyers.

Trump on Saturday (Mar 21) gave Iran a 48-hour ultimatum demanding that it fully reopen the strategically important Strait of Hormuz. In a strongly worded statement, Trump warned that failure to comply would trigger US strikes on Iran’s power infrastructure, signaling a potential widening of the war with major global energy and security implications. "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 wrote in a Truth Social post. In another post, he claimed, “The United States has blown Iran off the map…Their leadership is gone, their navy and air force are dead, they have absolutely no defense, and they want to make a deal. I don’t! We are weeks ahead of schedule.”

 

How did Iran respond to his ultimatum?

In its first response after US President Donald Trump's threat, Iran's military on Sunday (Mar 22) renewed threats against the region's infrastructure. "Following previous warnings, if Iran's fuel and energy infrastructure is violated by the enemy, all energy, information technology, and desalination infrastructure belonging to the US and the regime in the region will be targeted," the Iranian military's operational command Khatam Al-Anbiya said in a statement carried by Fars news agency. In another statement, Khatam Al-Anbiya said, "If the United States' threats regarding Iran's power plants are carried out... the Strait of Hormuz will be completely closed, and it will not be reopened until our destroyed power plants are rebuilt," it said. Iran's Parliament Speaker Mohammad Bagher Ghalibaf said that if power plants are hit, then infrastructure, as well as energy and oil infrastructure across the entire region, will be considered legitimate targets and will be “irreversibly destroyed.”

Iranian President Masoud Pezeshkian said that threats against Iran “only strengthen our unity.” “The illusion of erasing Iran from the map shows desperation against the will of a history-making nation,” Pezeshkian posted on X. “Threats and terror only strengthen our unity. The Strait of Hormuz is open to all except those who violate our soil. We firmly confront delirious threats on the battlefield," he added.

 

The UK

UK Prime Minister Keir Starmer and US President Donald Trump agree that reopening the Strait of Hormuz is "essential to resume global shipping" during a call late on Sunday. Downing Street says the prime minister will later lead a "Cobra" meeting with Chancellor Rachel Reeves, Bank of England Governor Andrew Bailey, and others, on the economic impact of the war.

On Saturday night, Trump gave Iran a 48-hour deadline to reopen the Strait of Hormuz , or, he said, the US would "obliterate" Iranian power plants, "starting with the biggest one first" Meanwhile, the Israel Defense Forces (IDF) says it expects to face "several more weeks of fighting" against Iran and Hezbollah The IDF also announced an approval to plans to expand attacks against Hezbollah in Lebanon, raising fears of a large-scale ground invasion.

 

Conclusion

U.S. President Donald Trump on Saturday delivered a stark ultimatum to Iran, threatening to “obliterate” Iran’s power plants if Tehran does not fully reopen the Strait of Hormuz within 48 hours.

Iran responded by warning it would target U.S. infrastructure in the Gulf, including energy and desalination facilities, if Washington carried out its threat.

Iran’s speaker of the Parliament also warned that financial entities supporting the U.S. military budget were legitimate targets, and that buyers of U.S. Treasury bonds were purchasing “a strike on your HQ and assets.” 

The dueling warnings came after Iran targeted nuclear facilities in Israel, following reports of U.S.-Israeli attacks on an Iranian nuclear enrichment complex. The Israeli military said some missiles struck the southern cities of Dimona and Arad after air defenses failed to intercept them.

The latest escalation has raised fears among corporate executives that the conflict will drag on for months, prolonging uncertainty for the global economy. 

While oil prices stabilized on Monday, some analysts have warned that further escalations, including strikes on critical infrastructure and energy facilities in the Middle East, could push prices higher. 

U.S. stock futures were little changed on Monday, though Wall Street’s three major indices ended last week lower. The S&P 500 declined by more than 1.5% and fell below its 200-day moving average for the first time since May. The Dow, which saw its first four-week losing streak since 2023, and the Nasdaq each fell around 2% last week.

With the conflict now in its fourth week and showing no sign of ending, the head of the International Energy Agency warned the crisis was “very severe” and worse than the two oil shocks of the 1970s put together.

 

 

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