LONDON/NEW YORK — As the Iran war grinds into its 34th day, the battlefield is shifting from the skies over Tehran to the diplomatic corridors of London and the United Nations — and the fallout is rattling every gas pump and stock ticker on the planet.
On Thursday, more than 40 countries joined a UK-hosted virtual summit to hammer out a plan to reopen the Strait of Hormuz, the critical shipping chokepoint that Iran has effectively strangled since early March. Meanwhile, Bahrain’s bold UN Security Council resolution authorizing “all necessary means” to secure the strait hit a wall of opposition, and President Trump’s primetime address — meant to calm markets — instead sent oil surging past $108 a barrel.
It was a day that made one thing brutally clear: the war may be “nearing completion” in Trump’s words, but its economic shockwaves are just getting started.
UK Leads 40-Nation Coalition on Hormuz Crisis
British Foreign Secretary Yvette Cooper convened foreign ministers from more than 40 countries on Thursday for an emergency virtual summit focused on one urgent question: how to get oil flowing through the Strait of Hormuz again.
The strait — a narrow waterway between Iran and Oman — handles roughly 20% of the world’s oil supply. Since Iran began mining the strait and attacking commercial vessels in early March as retaliation for the US-Israeli bombing campaign, global energy markets have been in chaos. Several nations, including the Philippines, have declared states of emergency over fuel shortages.
Cooper didn’t mince words at the summit’s opening. “Iran is holding the world economy hostage,” she told attendees, according to the BBC. The summit’s focus was primarily diplomatic, but a follow-up military planning meeting has already been scheduled for next week to discuss “viable options to make the Strait of Hormuz accessible and safe for navigation.”
Notably, the United States was not among the 40+ countries at the table. The UK has been careful to position itself as a diplomatic broker rather than a co-belligerent — a stance that Prime Minister Keir Starmer reinforced earlier this week when he promised Britain would not be “dragged into” the conflict.
Plans discussed at the summit include clearing sea mines laid by Iranian forces and rescuing commercial ships trapped in the strait. A coalition of European, Asian, and Gulf states — including France, Germany, Japan, Australia, and the UAE — have signed on to the effort.
Bahrain’s UN Resolution Hits a Wall
At the UN Security Council, Bahrain’s Foreign Minister pushed for a vote on a resolution that would authorize countries to use military force to reopen the Strait of Hormuz. The initial draft explicitly invoked Chapter VII of the UN Charter — the provision that allows everything from sanctions to armed intervention.
But the resolution ran into a buzzsaw of opposition. Diplomats told Reuters that Russia and China, both sympathetic to Tehran, were prepared to veto any binding enforcement mechanism. A revised draft dropped the Chapter VII reference but retained strong language authorizing force “within or near territorial waters” to prevent interference with international shipping.
Even that wasn’t enough. According to The National, the resolution failed to gain sufficient support on Thursday. Bahrain’s delegation has expressed hope for a revised vote on Friday, but the diplomatic math remains daunting with two veto-wielding powers standing in the way.
The stalled resolution underscores the deepening divide between Western powers demanding freedom of navigation and the Russia-China axis that has consistently shielded Iran from international consequences throughout the conflict.
Trump’s Address: ‘Nearing Completion’ — But Markets Aren’t Buying It
President Trump’s first primetime address since launching Operation Epic Fury was supposed to be the moment he declared victory and signaled an exit. Instead, it may have made things worse.
Speaking from the Cross Hall of the White House on Wednesday evening, Trump told the nation that “core strategic objectives are nearing completion” and that American forces would “finish the job” within two to three weeks. He touted the destruction of Iran’s nuclear facilities and military infrastructure, blasted the Obama-era Iran nuclear deal, and took credit for what he called the most successful air campaign in US history.
But the speech was riddled with contradictions that spooked investors. Trump simultaneously claimed the war was winding down while threatening to bomb Iran “back to the stone ages” and vowing to hit the country’s power grid “simultaneously.” He offered no concrete timeline, no ceasefire framework, and no plan for the Hormuz crisis beyond telling allies to “go to the strait and just take it.”
The result? West Texas Intermediate crude surged above $108 a barrel on Thursday morning. S&P 500 futures dropped 1.6%. Nasdaq 100 futures fell 2.1%, erasing a strong rally from earlier in the week. Bond markets sold off amid fears of stagflation — lower growth paired with higher inflation driven by energy costs.
“Trump offered magical thinking — but no real plan — for how to reopen the Strait of Hormuz,” said Sen. Richard Blumenthal (D-CT), echoing the frustration of economists and traders alike.
Austria Closes Airspace, European Cracks Widen
In a revealing sign of just how isolated the US has become among its traditional allies, Austria confirmed Thursday that it has been denying American combat aircraft permission to fly over its territory since the war began, citing its long-standing policy of neutrality.
Austria isn’t the only European country pushing back. French President Emmanuel Macron used unusually blunt language on Thursday, saying it was “unrealistic” to reopen the Strait of Hormuz by force and accusing Trump of undermining NATO by creating “daily doubt about his commitment” to the alliance.
Trump’s response? He told the British Telegraph he was considering pulling the US out of NATO entirely, calling the alliance a “paper tiger” and slamming European members for their “lackluster military support” for the Iran war. The threat sent shockwaves through European capitals and added yet another layer of geopolitical uncertainty to an already volatile situation.
The Human Cost: Day 34 by the Numbers
Behind the diplomacy and market swings, the war continues to exact a devastating human toll:
- 13 US service members killed, with hundreds more wounded
- At least 50 killed in Iranian retaliatory attacks across Gulf nations
- 17 killed in Israel from Iranian missile and drone strikes
- Over 1 million displaced in Lebanon by Israeli strikes
- Humanitarian aid shipments trapped in the Strait of Hormuz, unable to reach affected populations
- Multiple countries facing fuel emergencies, with the Philippines under a state of emergency
Iran’s military responded to Trump’s speech with characteristic defiance, saying the US and Israel face “lasting regret and ultimate surrender.” Meanwhile, Iran’s President Masoud Pezeshkian struck a more conciliatory tone, saying his country held “no hostility towards the people of the United States.”
Iran Drafts Hormuz Protocol With Oman
In a potentially significant diplomatic development, Iran is reportedly drafting a protocol with neighboring Oman to monitor traffic through the Strait of Hormuz, according to Iran’s official IRNA news agency. The move could signal Tehran’s willingness to establish a “tollbooth” system — vetting vessels and charging for passage — rather than maintaining a total blockade.
Analysts warn this could become the default outcome if the US withdraws without securing the strait. An Iran-controlled tollbooth on the world’s most important oil chokepoint would fundamentally reshape global energy politics and hand Tehran enormous leverage for decades to come.
What Comes Next
The next 48-72 hours are critical. Several major developments are converging:
- Friday: Bahrain may push for a revised UN Security Council vote on the Hormuz resolution
- Next week: UK-led military planning meeting to discuss mine-clearing and naval escort operations
- 2-3 weeks: Trump’s self-imposed deadline to “complete military objectives” in Iran
- Ongoing: Iran-Oman negotiations over a Hormuz transit protocol
The war in Iran may be entering its final chapter — but who writes the ending is far from decided. With 40 nations scrambling to reopen the world’s most important shipping lane, markets in freefall, and NATO itself under threat, Day 34 of Operation Epic Fury may be remembered as the day the Iran crisis became everyone’s crisis.
This is a developing story. Check back for updates as the situation evolves.