TLDR
Donald Trump has set a Tuesday, April 8 deadline for Iran to reopen the Strait of Hormuz, threatening military action. Oil prices have climbed over $119 per barrel, and Australia's fuel security is under review.
KEY TAKEAWAYS
Global oil markets were thrown into turmoil on Monday after US President Donald Trump announced a new deadline for Iran. He demanded the immediate reopening of the Strait of Hormuz by Tuesday, April 8. Prices for Brent crude jumped 8 percent to trade above $119 a barrel on the news.
The ultimatum came via a post on Trump's Truth Social platform late on April 6. The post was characteristically blunt. Trump wrote that Iran "can be taken out in one night, and that might be the answer."
Trump issues stark military ultimatum
In a follow-up post just two hours later, Trump elaborated on his military threat. He said he would "bomb every bridge and power plant" in Iran if his demands were not met. The post sent shockwaves through diplomatic channels and financial markets.
The United States Fifth Fleet, based in Bahrain, has maintained a heightened state of readiness for over three weeks.
Tehran's defiant response
Iran's government swiftly rejected a US-backed ceasefire proposal that was drafted by Egypt, Pakistan and Turkey and passed on by Pakistan over the weekend. The Foreign Ministry in Tehran issued a terse statement on Monday morning. It called the proposal "unacceptable" and an attempt at coercion.
Foreign Ministry spokesman Esmaeil Baghaei called the proposal "illogical" and said Iran could not take part in negotiations under threat.
Markets react with alarm
The immediate market reaction saw Brent crude, the global benchmark, surge to $119.45, its highest level in 18 months. Commodity traders are bracing for further volatility ahead of the Tuesday deadline. The Strait of Hormuz is the transit point for around 20 percent of the world's total oil consumption.
Australia's fuel security under pressure
The crisis prompted an immediate diplomatic response from key US allies. The office of Japanese Prime Minister Sanae Takaichi announced she is planning an urgent visit to Australia next week. Discussions will centre on securing alternative fuel supply chains for the Indo-Pacific region.
In Canberra, Climate Change and Energy Minister Chris Bowen addressed the nation's preparedness. Bowen said on Saturday, April 4, that Australia held 39 days of petrol and 29 days of diesel in reserve.
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