Middle Eastern geopolitical stressors have raised alarms in international financial markets after reports that Washington and Israel may restart military operations against Iran as early as next week.
Officials and sources on the subject have said Washington and Tel Aviv are engaged in “intense preparations” for a potential renewed military campaign against Iran. Trump’s statement in a Fox News interview that the United States could “destroy everything in Iran in two days” if it decided, in their words, to ramp up their military was a source of particularly sharp public interest.
Trump also warned of Iran’s potential to “make a deal or get annihilated,” as tensions over Tehran’s nuclear activities and continuing disputes over the Strait of Hormuz grow. The latest reported fears have added to fears of a resurgence in instability in the Middle East, and some investors are now speculating that a possible future showdown involving Iran, the US and Israel is around the corner.
Analysts have said any major military conflict involving Iran could cripple global oil supply chains, especially as Iran’s proximity to the Strait of Hormuz, one of the world’s most critical energy shipping links, provides it with particular scrutiny. Investors are already nervous about international oil and gas market futures with signs of higher crude oil prices, increased stock volatility, and global currency pressure.
Energy markets are particularly at the mercy of this kind of local disruption. Even minor disruptions in the Strait of Hormuz can affect global fuel supplies and transportation costs. Advisers close to Trump, reports say, have made a list of military options if the talks with Iran come crashing down entirely.
🚨 BREAKING
— Wimar.X (@DefiWimar) May 16, 2026
🇺🇸🇮🇱 U.S. AND ISRAEL WILL RESUME STRIKES ON IRAN NEXT WEEK, ACCORDING TO NYT.
TRUMP JUST TOLD FOX NEWS, "THE U.S. COULD DESTROY EVERYTHING IN IRAN IN 2 DAYS."
THIS IS EXTREMELY BAD FOR MARKETS... pic.twitter.com/TmMTPyqyYX
All of which have purportedly included renewed bombing operations and even discussions of special operations targeting Iran’s nuclear infrastructure. But no formal news has emerged out of the White House. And officials in Tehran, he added, have reportedly warned that Tehran could ramp up uranium enrichment if attacks carry on. Israeli Prime Minister Benjamin Netanyahu has also said that the war against Iran is no longer finished until Tehran is forced to curb its enriched uranium stockpile.
Inflation, fuel prices and widespread economic instability are also making investors unsettled. The extended war risks roiling stock markets globally, particularly in aviation, manufacturing and transport, also sending safe-haven assets to rise, such as gold and the dollar, experts said.
Now, global leaders are likely to demand that diplomatic talks take place to avert a more widespread regional stalemate. Tensions, however, rose rapidly, and the tone of the argument reached a fever pitch across all areas, so markets could be volatile for the coming few days.
