Trump says US may expand Iran strikes to power plants and bridges

President Donald Trump said U.S. military attacks on Iran could intensify over the next week, including potential strikes on power plants and bridges, if Tehran does not engage in peace negotiations. Oil prices edged higher Wednesday, with front-month Brent crude futures above $85 a barrel, as concern persisted over the Strait of Hormuz, a key route for Middle East oil shipments.

In a Fox News interview Tuesday evening, Trump said the U.S. would continue striking Iranian targets in the near term. “We’re going to hit them very hard tonight,” he said. “We’re going to hit them hard tomorrow night. We’re going to hit them really hard the night after.”

Trump linked any broader campaign against Iranian infrastructure to diplomacy. “Next week it gets really bad for them because next week comes the power plants,” he said. “Next week comes the bridges. We’re going to knock out all their power plants. We’re going to knock out all their bridges unless they get to the table and negotiate.”

The comments followed additional U.S. Central Command strikes against Iran on Tuesday, according to CNBC. Tehran has also launched attacks on multiple Gulf countries, CNBC reported, adding to the strain around one of the world’s most sensitive energy corridors.

Hormuz pressure feeds oil-market risk

The Strait of Hormuz links the Gulf with the Arabian Sea and is a critical passage for crude and fuel shipments. When security risks rise in the waterway, traders often reassess the probability of delays, rerouting, higher insurance costs or interruptions to exports. Those costs can feed into physical cargo pricing and futures markets, even when shipments continue.

The latest escalation followed U.S. strikes on dozens of Iranian targets last week. CNBC reported that Washington launched those attacks in retaliation for assaults on commercial ships transiting the Strait of Hormuz. Trump later said the ceasefire between Washington and Tehran was “over,” according to CNBC.

Earlier this week, Trump threatened to impose a 20% levy on cargo shipped through the strait, before dropping that demand on Tuesday. He said Gulf states would instead invest in the U.S. as repayment, CNBC reported.

A levy on cargo would have acted as an added charge on goods using the route, potentially increasing costs for shippers and buyers depending on how contracts allocated the expense. Removing the demand reduced one policy uncertainty, but did not end concerns over military activity and maritime security.

Shipping industry cites confusion and risk

Jakob Larsen, chief safety and security officer at the international shipping association BIMCO, told CNBC’s “Squawk Box Europe” on Wednesday that the situation was difficult for the industry to handle.

“All these messages going back and forth and changing direction completely just adds to the confusion and the complexity of the whole situation,” Larsen said. “If you take a step away and look at it from above, then the overall environment we’re looking at is increased uncertainty, increased risks, and with that comes higher prices.”

For shipping operators, higher perceived risk can affect route planning, insurance arrangements and chartering costs. For energy markets, the main concern remains whether vessels can continue to pass safely through Hormuz, and whether the conflict spreads in ways that affect production sites, ports or power infrastructure.

The White House warning leaves the near-term path dependent on diplomacy and military decisions in Washington and Tehran. Trump said further escalation could be avoided if Iran returns to negotiations, while U.S. forces have continued operations after the breakdown of last month’s fragile ceasefire.

This story draws on original reporting from CNBC.