Trump demands Iran ‘unconditional surrender’ as war upends global markets
Qatar warns that a protracted war could bring down the economies of the world
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[WASHINGTON] US President Donald Trump demanded Iran surrender as the war on the Islamic Republic raged for a seventh day, with the impact reverberating across global supply chains and energy markets.
Washington doesn’t want to negotiate an end to the conflict and will only accept “unconditional surrender!” Trump wrote on Truth Social on Friday (Mar 6) .
Brent crude futures hit US$90 a barrel for the first time in almost two years, with shipping through the Strait of Hormuz at a near-total halt and energy exporters scrambling for routes out of the region. Danish container giant AP Moller-Maersk suspended two services spanning the Far East to Europe due to security risks.
Qatar warned that a protracted war could “bring down the economies of the world,” predicting that all Gulf energy exporters would shut down production within weeks, the Financial Times reported on Friday, citing an interview with the country’s energy minister.
The Wall Street Journal reported that Kuwait has begun cutting production at some oil fields after running out of places to store bottled-up crude, the latest sign of a hit to supply in the region.
A global bond rout continued unabated as concerns mount among traders that climbing energy prices will force central banks to slow their pace of rate cuts. The US dollar is rising the most on a weekly basis since 2024.
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Emerging markets have seen a sell off of their assets. Turkey has spent US$12 billion, equal to roughly 15 per cent of its foreign-currency reserves, to keep the lira stable this week.
Iran fired a barrage of missiles and drones targeting a number of Gulf countries overnight and into Friday, with particularly powerful blasts heard in Kuwait. Bahrain was also attacked. Missile alerts were sent to residents in Dubai on Friday for the second day running.
Israel – acting with the US – maintained airstrikes on the Islamic Republic. The country’s forces “significantly expanded” its ground presence inside Lebanon, where forces have stepped up their assault on Teheran-aligned Hizbollah, and unleashed a wave of airstrikes on Beirut’s southern suburbs.
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Trump said on Thursday that “action to reduce pressure on oil is imminent,” as US petrol pump prices advanced to the highest level since September 2024. Rising fuael prices could be particularly damaging for Trump ahead of midterm elections in November.
The US Treasury issued a licence for India to temporarily increase its purchases of Russian oil and Trump administration officials are weighing a long list of other options.
Iran’s President Masoud Pezeshkian said some countries have initiated efforts for mediation. But while the Islamic Republic is “committed to lasting peace,” it will continue to defend itself.
Trump vowed to “totally demolish” Iranian forces, telling NBC he wanted to “clean out” Iran’s leadership structure and he had names in mind to take over.
The US-Israeli war has left at least 1,332 people dead in Iran so far, and dozens of others have been killed elsewhere in the region in retaliatory strikes. Six US troops have been killed, all in the first two days of fighting. In all, around a dozen countries have been embroiled in the conflict.
Iran is poised to elect a successor to supreme leader Ali Khamenei, who was killed on Feb 28, the first day of the war. Mojtaba Khamenei, the slain leader’s second-oldest son, is in the running. Trump said he was a “lightweight” who wouldn’t change the regime’s policies and insisted on being personally involved in picking the country’s next leader.
Airlines remain hamstrung by the conflict, with the number of cancelled flights to Middle East hubs surpassing 23,000 since fighting began. Thousands of passengers remained stranded in the Gulf region, although on Friday Emirates said it’s aiming for a return to full network operations in coming days.
Arab states reported intercepting Iranian projectiles overnight into Friday. Bahrain said a unit at its Sitra refinery, the region’s oldest, caught fire after being struck by a missile. Qatar thwarted an attack targeting Al Udeid Air Base, a US military facility. The US suspended operations at its embassy in Kuwait.
Saudi Arabia said it had intercepted multiple missiles and drones overnight. Strikes have mostly been directed at Al Kharj near Riyadh, where the US has a facility, or the east where Saudi Aramco operates its headquarters. The kingdom is diverting millions of barrels of crude to a port on its Red Sea coast, helping the world’s top exporter maintain supplies.
Of the 500 ballistic and cruise missiles and 2,000 drones Iran has launched since the start of the war, about 60 per cent were aimed at American targets, according to Iran’s Fars News Agency. Many of those US assets are located in Gulf states.
Countries in Europe and Asia are moving to bolster the region’s defences. Italy intends to send air-defence systems, as well as counter-drone capabilities, to the Gulf, Defense Minister Guido Crosetto said on Thursday.
South Korea said it is in talks with the US about the possible redeployment of weapons, including Patriot air-defence systems. France has authorised US military support aircraft not involved in operations in Iran to use Istres Air Base, AFP reported.
Nato said it was boosting its missile defence posture following the downing on Wednesday of an Iranian missile heading towards Turkish airspace.
Israel Defense Forces chief of staff Eyal Zamir said strikes have neutralised more than 60 per cent of Iran’s ballistic missile launchers. Iran’s navy has also suffered devastating losses.
Defense Secretary Pete Hegseth told reporters “it could be six, it could be eight, it could be three” weeks before operations are concluded. Trump told Politico the US has an “unlimited supply of weapons.”
“Iran is hoping we cannot sustain this,” Hegseth told a news conference later at Central Command’s headquarters in Florida. “Our capabilities are overwhelming and gathering still, as are those of our Israeli partners. Our munitions are full up.” BLOOMBERG
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