Trump says Iran should surrender, threatens to bomb Oman
[WASHINGTON] US President Donald Trump said on Monday (Aug 17) that Iran should surrender to end a war with the US as...
Source: The Business Times Singapore · August 17, 2026 at 7:27 PM · AI-assisted report
WASHINGTON, 18 AUGUST 2026 —
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Trump Urges Iran’s Surrender, Threatens Military Action Against Oman Amid Stalled Nuclear Talks
Market Impact
KUALA LUMPUR — U.S. President Donald Trump on Monday (Aug 17) escalated rhetoric against Iran, calling for its "surrender" to end the ongoing conflict while threatening military action against Oman if it interferes with regional shipping routes. The remarks come as stalled negotiations between Washington and Tehran risk further destabilizing global oil markets, including Malaysia’s energy sector.
Trump’s comments follow the collapse of a June interim deal, which had aimed to halt military operations and pave the way for broader talks on Iran’s nuclear program. The memorandum of understanding (MOU), signed in June, required both sides to negotiate a final agreement within 60 days—extendable by mutual consent. However, Trump declared the deal "over" on July 7, while Iran’s foreign ministry suspended its participation a week later.
Monday marked the 60-day deadline, with no progress reported.
The dispute has centered on the Strait of Hormuz, a critical chokepoint for global oil and liquefied natural gas (LNG) shipments, accounting for 20% of global supply before attacks by the U.S. and Israel in late February disrupted trade. Oman, a key mediator in regional diplomacy, has been in talks with Iran to restore commercial shipping in the strait. Trump’s threat to bomb Oman if it obstructs U.S. interests underscores the escalating tensions.
Fuel prices have surged amid the conflict, pressuring Trump to resolve the crisis ahead of the November U.S. midterm elections, which will determine control of Congress. Trump dismissed suggestions that domestic politics influenced his strategy, stating, “Midterms have nothing to do with my thinking.” His primary stated goal remains preventing Iran from acquiring nuclear weapons, a position reiterated in a Monday post on Truth Social.
Impact on Malaysia’s Energy Market Malaysia, a net exporter of LNG and a key player in Southeast Asia’s energy sector, faces heightened volatility due to the Strait of Hormuz disruptions. The strait is a vital route for Malaysian LNG shipments to major markets, including Japan and South Korea. Any prolonged closure or military escalation could disrupt supply chains, driving up regional fuel costs and inflation.
Industry analysts warn that prolonged instability may force Malaysian energy firms to reroute shipments, increasing operational costs.
Sector and Company Implications Malaysian energy giants such as Petronas, which operates LNG facilities in Bintulu and supplies global markets, could face indirect impacts from prolonged tensions. While Petronas has not issued public statements on the crisis, the company’s exposure to LNG pricing and supply chain risks makes it vulnerable to geopolitical shocks.
Regional shipping firms, including MISC Berhad, may also see increased insurance premiums and operational delays if the Strait of Hormuz remains a conflict zone.
Outlook The collapse of the interim deal and Trump’s aggressive rhetoric suggest a prolonged standoff, with limited prospects for renewed negotiations in the near term. Analysts anticipate continued volatility in global oil and LNG markets, particularly if military actions escalate. For Malaysia, the priority will be safeguarding energy supply chains and mitigating economic risks from regional instability. Details on Malaysia’s contingency plans or official responses remain unavailable as of now.
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