Trump Threatens Iran with ‘Big Hit’ If There’s No Deal Soon

• President Donald Trump again raised the prospect of renewed military action against Iran, threatening to resume strikes in the coming days after saying he had just called off a planned U.S. attack as part of Washington’s push for a deal to end the war. Trump said he hoped the U.S. would not have to “do the war,” but warned that Iran may face “another big hit” within a limited period, possibly by the weekend or early next week.
• The warning comes as Iran continues to resist U.S. demands to relinquish the remaining elements of its nuclear programme, despite weeks of U.S. and Israeli strikes that began in late February. Trump has repeatedly threatened, and then backed off from, renewed military action since a truce was agreed on April 8.
• At the same time, Vice President JD Vance struck a somewhat more positive tone, saying the U.S. had made progress and that Iran appeared to want a deal. However, he also warned that the next option would be restarting the military campaign.
• Domestically, the Republican-led U.S. Senate has signalled growing unease over continuing the war, with a procedural vote reflecting concern over a foreign conflict that is taking a mounting financial toll on Americans ahead of midterm elections.
• Market pressures remain elevated, as the conflict has shut down the Strait of Hormuz, a vital waterway for oil and gas flows, causing global energy prices and inflation to surge. Iran has maintained a chokehold over Hormuz, pushing U.S. fuel pump prices to their highest level in almost four years.
• U.S. Treasury yields on the longest-dated bonds rose to their highest level in almost two decades as investors assessed the war’s growing macroeconomic impact. Brent crude fell around 1% on Tuesday, May 19, 2026, and traded above US$110 per barrel, but remains more than 50% higher since the war began.
• Further underscoring the fragility of the truce, the UAE’s Barakah nuclear-energy plant was hit by a drone, causing a fire at a power station. Normal power was later restored at the plant, easing safety concerns after the drone attack. However, oil prices remain supported by disrupted supply, uncertainty around the Strait of Hormuz, and unresolved U.S.-Iran negotiations.

(Source: Bloomberg)