US President Donald Trump said Wednesday that Iran has taken too long to negotiate a peace deal and will now “have to pay a price.”
“Iran’s military is in complete and utter disarray,” the president said in a post on Truth Social. “Like Iran’s navy and air force, much of it no longer even exists. Iran has been completely defeated. Iran is all talk and no action.”
Oil price reaction
Oil prices rose and U.S. stock futures fell in response to Trump’s comments.
U.S. crude oil futures for July delivery rose nearly 2% to $89.72 per barrel, while international standard Brent crude oil futures for August delivery rose 1.3% to $92.74 per barrel.
CNBC has contacted Iran’s Ministry of Foreign Affairs for comment.
President Trump later criticized the “fake news media” for refusing to report how effective the U.S. naval blockade was and that it was the most successful blockade in the history of naval warfare in a post on Truth Social.
He added: “Nothing will happen unless we want it to happen. It’s a steel wall! Iran has no business, no military expenses and no bills to pay, and will soon become a failed state! A lot of oil is leaking. Praise be to Allah!”
The post came just one day after President Trump said a deal could be reached within “a few days” and that the vital Strait of Hormuz would reopen “immediately” after the agreement.
The United States is attempting to put pressure on Iran to reach a deal by blockading Iranian ports and ships. Analysts at JPMorgan Chase & Co. say more oil may be passing through Hormuz than is being disclosed.
According to bank estimates shared in a June 4 memo, about 2 million barrels a day could be leaking from tankers with switched off transponders.
Tensions in the Middle East rose on Tuesday. The U.S. military launched an attack on Iran, which U.S. Central Command said was “in response to yesterday’s downing of a U.S. Army Apache helicopter.”
Iran did not directly claim responsibility for the downing of the helicopter, and Iranian state broadcaster IRIB reported that there had been no offensive military operations in the strait in the past 24 hours.
—CNBC’s Spencer Kimball contributed to this report.
