Trump Issues Fresh Ultimatum to Iran as Regional Tensions Impact Global Energy Markets

President Donald Trump escalated his rhetoric against Tehran on May 18, stating that Iran must move quickly toward a nuclear agreement or face "much worse" consequences. The President emphasized that military options remain open following consultations with national security officials. This public pressure coincides with reports of a potential military alignment between the U.S. and Israel, with discussions reportedly held between Trump and Prime Minister Benjamin Netanyahu regarding joint operations if hostilities resume. On the ground, regional security remains volatile. Saudi Arabia reported intercepting drones, while the UAE confirmed a drone strike on an electrical generator near the Barakah Nuclear Power Plant. While UAE authorities stated nuclear safety was not compromised, the event highlights the growing vulnerability of Gulf infrastructure. In response, oil prices rose for a third consecutive day as market analysts expressed concern over potential shipping disruptions in the Strait of Hormuz. Despite the heightened military signaling, a diplomatic track remains functional. Iranian Foreign Ministry spokesman Esmaeil Baqaei confirmed that indirect exchanges with Washington are continuing via Pakistani and Omani mediators. However, Tehran characterized the latest U.S. demands—including the reduction of Iran's nuclear operations to a single site—as excessive, maintaining that Washington has not offered sufficient concessions in return.