Trump threatens to strike Iran's power plants and bridges, reverses 20% Hormuz toll after Gulf protests

Threats escalate

President Donald Trump said the US would next week target Iran's power plants and bridges if Tehran does not agree to a deal, marking a sharp escalation in the four-month-old conflict over the Strait of Hormuz. In a Fox News interview on Tuesday, he warned that "next week it gets really bad for them because next week comes the power plants. 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 threat came as US forces carried out strikes against Iranian assets for a fourth straight day, with Centcom saying they were intended to degrade capabilities used to attack commercial shipping. Iranian state media reported explosions near Bandar Abbas and Qeshm Island.

Tolls, deals and a sudden U-turn

Earlier the same day Trump had announced a 20% fee on all goods transiting the strait, saying the US "wants to be reimbursed" for protecting the vital shipping lane. Within hours, he reversed course after what he described as alarmed calls from Gulf leaders. "Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% reimbursement tax with trade and investment agreements that the various Gulf states will enter into with the United States," Trump posted on Truth Social.

I have decided to replace the 20% reimbursement tax with trade and investment agreements that the various Gulf states will enter into with the United States.

He added that the investments would be "massive" but also extraordinarily beneficial for the Gulf states. The abrupt about-face came just five hours before the toll was due to take effect, after public opposition from Vice President Jd Vance and Secretary of State Marco Rubio.

Tanker strikes and the blockade

Iran's Revolutionary Guard confirmed it struck two UAE-flagged oil tankers on Tuesday in the southern Hormuz shipping lane, within Omani territorial waters. The Guard said the vessels were "deceived and undisciplined," lured by the US military to use a route Tehran deems illegal, and had switched off their navigation systems before being hit. The Guard warned that "any ship that transits the route offered by the enemy will suffer damage," linking the attacks to a broader energy crisis.

Any ship that transits the route offered by the enemy will suffer damage and cause delays in the reopening of the Strait of Hormuz, creating an energy crisis in the world.

Meanwhile, the US naval blockade on Iranian ports continued. Trump claimed the strait was "open except for Iranian ships and ports" and that oil was flowing "like never before," but crude prices told a different story. Brent crude rose to more than $87 a barrel on Tuesday, its highest level in a month.

Escalation timeline

Iran warns over nuclear site

Tehran responded to a separate threat from Trump, who on Monday said that Pickaxe Mountain, a secret underground nuclear tunnel complex near Natanz, was "on the list" and that the US would "probably" target it soon. A senior Iranian security source told CNN that Iran would give a "devastating response" if the US acted on that threat.

If Trump acts on his threats, we will give a devastating response and the price to pay will be American soldiers and its regional partners.

Iranian state media later reported that Iranian forces launched a drone attack on a military base in Jordan that hosts American warplanes, widening the regional fallout.

Regional dimension and dimming truce

The escalation also pulled in Saudi Arabia, with Axios reporting that Trump had given Crown Prince Mohammed bin Salman his backing for military action against Iran-backed Houthi rebels in Yemen. A Saudi strike on Sanaa airport and retaliatory Houthi missile attacks marked the worst flare-up since 2022. The cycle of strikes has dimmed prospects for a permanent truce, with the fragile ceasefire of 17 June now hanging by a thread.