Trump threatens to ‘obliterate’ Iran’s power plants if Tehran does not fully reopen Strait of Hormuz within 48 hours
An ariel view shows the Burj Khalifa, the world’s tallest tower, dominating the Dubai skyline on April 10, 2016. PHOTO: AFP
Stock markets in the United Arab Emirates declined on Monday after Iran warned it would strike energy infrastructure across the Gulf if US President Donald Trump follows through on his threat to attack its electricity grid.
Trump on Saturday threatened to “obliterate” Iran’s power plants if Tehran did not fully reopen the Strait of Hormuz within 48 hours, a significant escalation barely a day after he talked about “winding down” the war, now in its fourth week.
Iran seemingly retracted earlier threats to desalination plants in the region, which are crucial for providing drinking water in Gulf countries.
“The lying … US President has claimed that the Revolutionary Guards intend to attack the water desalination plants and cause hardship to the people of the countries in the region,” the statement issued by Iran’s military command and shared on state media said.
After more than three weeks of intense US and Israeli airstrikes that have significantly degraded Iran’s missile production and launch capabilities, Tehran continues to demonstrate its ability to retaliate effectively. The ongoing regional conflict has driven sharp increases in energy prices, disrupted air travel, and severely impacted shipping operations through the Strait of Hormuz.
Dubai’s main share index .DMFGI tumbled 2.7% in early trade, dragged down by a 4.6% drop in blue-chip developer Emaar properties EMAR.DU and a 2.9% fall in top lender Emirates NBD Bank ENBD.DU.
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Abu Dhabi’s benchmark index .FTFADGI slipped 1.6% with real estate giant Aldar properties ALDAR.AD falling 5% and Abu Dhabi Commercial Bank falling 4.9%.
The Abu Dhabi-listed water and Electricity firm Abu Dhabi National Energy Company (better known as TAQA) TAQA.AD declined dipped 3.6%. Dubai Electricity and Water Authority DEWAA.DU was down 0.8%.
Adnoc Gas ADNOCGAS.AD slumped 2.7% after the firm said it made temporary adjustments to its production of liquefied natural gas and export-traded liquids in response to ongoing shipping disruption in the Strait of Hormuz.
“Operations are continuing safely across ADNOC Gas plc’s asset base,” ADNOC Gas said. “Following debris falling near certain facilities, inspections confirmed no injuries and no impact to core processing integrity.”
The Dubai index’s year-to-date losses climbed to 10.7%, while Abu Dhabi’s declined 5.9%, according to LSEG data.
