By Tom Ozimek
Contributing Writer
President Donald Trump warned on Wednesday that Iran would face renewed U.S. bombing “at a much higher level and intensity” if it fails to follow through on what he described as an emerging agreement to end the conflict in the Middle East.
“Assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption, the already legendary Epic Fury will be at an end, and the highly effective blockade will allow the Hormuz Strait to be OPEN TO ALL, including Iran,” Trump wrote in a Wednesday post on Truth Social.
“If they don’t agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before.”
Trump’s comments came amid a renewed diplomatic push involving indirect U.S.-Iran talks mediated by Pakistan, as well as growing signs of engagement by China, where top Iranian diplomats traveled to on Tuesday for discussions on topics that included the ongoing conflict.
Earlier this week, Trump paused “Project Freedom,” the U.S.-led naval mission escorting commercial vessels through the Strait of Hormuz, saying the move was intended to create space for negotiations while keeping the broader U.S. blockade on Iranian ports in place.
Senior Israeli political officials said that Jerusalem believed Trump’s decision followed signs of progress in contacts involving Iranian Foreign Minister Abbas Araghchi, though they cautioned that divisions within Iran’s leadership continued to threaten prospects for a durable agreement.
The officials said growing economic pressure from the blockade and disruption to maritime trade was intensifying unrest inside Iran and exacerbating tensions between Iranian President Masoud Pezeshkian and hardline commanders in the Islamic Revolutionary Guard Corps.
Speaking in Beijing on Wednesday after meeting Chinese Foreign Minister Wang Yi, Araghchi said Tehran would only accept “a fair and comprehensive agreement” in negotiations with Washington.
“We will do our best to protect our legitimate rights and interests in the negotiations,” Araghchi said, according to Iranian state media. “We only accept a fair and comprehensive agreement.”
The Strait of Hormuz, through which roughly one-fifth of global oil supplies normally pass, has been effectively shut since the conflict erupted on Feb. 28 following U.S. and Israeli airstrikes on Iran.
In targeting the strategic waterway, Iran has deployed mines, drones, missiles, and fast-attack craft to menace shipping and force vessels to use an IRGC-approved corridor and pay transit tolls to Tehran. The United States has responded with a blockade of Iranian ports and, while Project Freedom was active, escorted naval transits for commercial vessels.
Trump and other administration officials have insisted that Iran cannot be allowed to control access to the strategic shipping lane.
Markets Rally on Peace Hopes
Investors, meanwhile, appeared increasingly optimistic that diplomacy could avert a renewed escalation in the conflict.
Oil prices dropped sharply on Wednesday, with Brent crude futures falling nearly 8% to a two-week low, while U.S. crude also slid as traders reacted to signs of possible progress toward a peace agreement.
Wall Street also surged higher on the opening bell, extending a rally that pushed the S&P 500 and Nasdaq Composite to record highs a day earlier.
Analysts said optimism surrounding artificial intelligence stocks continued to drive equity gains, while hopes for a diplomatic breakthrough with Iran boosted broader market sentiment.
At the same time, some analysts warned markets could reverse sharply if negotiations collapse or fighting intensifies again.
“Wall Street continues to double down on its bet that the war in the Middle East will not re-escalate,” said Kyle Rodda, senior financial market analyst at Capital.com. “There’s a high risk that if that wager is wrong, risk assets would move sharply in reverse.”
Still, Trump’s comments suggested that Washington sees a path toward a negotiated settlement, even as it continues to threaten to use crushing military force if diplomacy fails.
Earlier, Trump said that the decision to pause Project Freedom came partly at the request of Pakistan and other regional countries, including Saudi Arabia.
Pakistani Prime Minister Shehbaz Sharif thanked Trump in a Wednesday post on X for what he called the U.S. president’s “courageous leadership” and “timely announcement” regarding the pause, giving diplomacy a chance.
Reuters contributed to this report.
