Trump demands Iran’s ‘unconditional surrender’ as war upends global markets

US President Donald Trump demanded Iran surrender as the war on the Islamic Republic raged for a seventh day, with the impact reverberating across global supply chains and energy markets. Washington does not want to negotiate an end to the conflict and will only accept “UNCONDITIONAL SURRENDER!” Mr Trump wrote on Truth Social on March 6. Brent crude futures hit US$90 (S$115) a barrel for the first time in almost two years, with shipping through the Strait of Hormuz at a near-total halt and energy exporters scrambling for routes out of the region.

Danish container giant AP Moller-Maersk suspended two services spanning the Far East to Europe due to security risks. Qatar warned that a protracted war could “bring down the economies of the world”, predicting that all Gulf energy exporters would shut down production within weeks, the Financial Times reported on March 6, citing an interview with the country’s energy minister. The Wall Street Journal reported that Kuwait has begun cutting production at some oil fields after running out of places to store bottled-up crude, the latest sign of a hit to supply in the region.

A global bond rout continued unabated as concerns mount among traders that climbing energy prices will force central banks to slow their pace of rate cuts. The US dollar is rising the most on a weekly basis since 2024. Emerging markets have seen a sell off of their assets.

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Turkey has spent US$12 billion, equal to roughly 15 per cent of its foreign-currency reserves, to keep the lira stable this week. Iran fired a barrage of missiles and drones targeting a number of Gulf countries overnight and into March 6, with particularly powerful blasts heard in Kuwait. Bahrain was also attacked.

Missile alerts were sent to residents in Dubai on Friday for the second day running. Israel, acting with the United States, maintained air strikes on the Islamic Republic. The country’s forces “significantly expanded” its ground presence inside Lebanon, where forces have stepped up their assault on Tehran-aligned Hezbollah, and unleashed a wave of air strikes on Beirut’s southern suburbs.

Mr Trump said on March 5 that “action to reduce pressure on oil is imminent”, as US petrol pump prices advanced to the highest level since September 2024. Rising fuel prices could be particularly damaging for Mr Trump ahead of midterm elections in November.

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