As the Middle East conflict entered its fourth week, tensions between Iran and the U.S.-Israel alliance have sharply escalated, particularly around the strategic Strait of Hormuz. Iran has issued a warning targeting buyers of U.S. Treasury bonds, with Parliament speaker Mohammad Bagher Ghalibaf stating that financial institutions holding American government bonds would be considered legitimate targets alongside military bases. Ghalibaf declared, 'U.S. treasury bonds are soaked in Iranians' blood. Purchase them, and you purchase a strike on your HQ and assets,' emphasizing that entities financing the U.S. military budget are also at risk [1].
This warning follows U.S. President Donald Trump's 48-hour ultimatum to Tehran, demanding the reopening of the Strait of Hormuz—a critical global energy shipping route—or facing strikes on Iranian power plants. The deadline is set to expire on Monday evening in Washington [1]. Israeli Prime Minister Benjamin Netanyahu has publicly supported the U.S. threat, stating, 'Whatever we do, we do together, and as far as possible, in confidence,' and urging European nations to join the war efforts. Netanyahu highlighted Iran's capacity to strike deep into Europe, warning that 'they are putting everyone in their sights' [1].
Iran has responded by threatening to completely shut the Strait of Hormuz and attack energy infrastructure and desalination facilities in the Gulf if the U.S. proceeds with its ultimatum. Ghalibaf warned that any U.S. or Israeli strike on Iran's power plants would 'immediately' trigger retaliatory attacks on energy and oil infrastructure across the region, causing 'irreversible' damage and leading to a sustained rise in oil prices [1].
Military hostilities have intensified, with Israel experiencing heavy missile activity and multiple alerts for civilians to take shelter. At least eight locations in central Israel have been hit by debris or explosives. On Monday, the Israeli military launched a wide-scale wave of strikes targeting Iranian infrastructure in Tehran, with reports of explosions in several parts of the capital. Iran has continued to fire missiles and drones at Israel and Gulf countries hosting U.S. assets, with Kuwait and the United Arab Emirates reporting intercepted attacks and air raid sirens sounding in Bahrain [1].
CONCLUSION
The escalating threats and military actions between Iran and the U.S.-Israel alliance have heightened geopolitical risks, particularly for global energy markets and financial institutions holding U.S. Treasury bonds. The potential for retaliatory strikes on regional energy infrastructure and a prolonged rise in oil prices underscores the high market impact and negative sentiment surrounding the crisis.