U.S. 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 won’t negotiate an end to the conflict and will only accept “UNCONDITIONAL SURRENDER!” Trump wrote on Truth Social on Friday, raising fears of a protracted conflict. The U.S. and its allies plan to select a “GREAT & ACCEPTABLE Leader(s),” he said.

Brent crude futures hit $90 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 A.P. Moller-Maersk A/S suspended two services spanning the Far East to Europe due to security risks.

Qatar warned that all Gulf energy exporters would shut down production within weeks in the event of a lengthy war, the Financial Times reported, citing an interview with the country’s energy minister. The Wall Street Journal said Kuwait has begun cutting production at some fields after running out of places to store bottled-up crude.

A global bond rout continued unabated as concerns mount that climbing energy prices will force central banks to slow their pace of rate cuts. The dollar is set for its strongest weekly rally since late 2024.

German Chancellor Friedrich Merz warned the U.S. and Israel against waging an “endless war” that could lead to the disintegration of Iran, a new migration crisis in Europe and lasting economic damage.

Iran fired a barrage of missiles and drones targeting a number of Gulf countries overnight and into Friday, with particularly powerful blasts heard in Kuwait. Bahrain and Saudi Arabia were also attacked. Missile alerts were sent in Dubai on Friday for the second day running, although residents were quickly given the all clear.

Israel — acting with the U.S. — maintained airstrikes 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 airstrikes on Beirut’s southern suburbs.

Trump said Thursday that “action to reduce pressure on oil is imminent,” as U.S. gasoline pump prices advanced to the highest level since September 2024. Rising fuel prices could be particularly damaging for the White House ahead of midterm elections in November.

The Trump administration has “many, many” tools to address the surge in oil prices, National Economic Director Kevin Hassett said in an interview with Bloomberg TV.

Posting before Trump’s comments, Iran’s President Masoud Pezeshkian said via X that some countries have initiated efforts for mediation. While the Islamic Republic is “committed to lasting peace,” he said, it will continue to defend itself.

Earlier this week, Iran denied a report that its Ministry of Intelligence reached out to the U.S. to negotiate a resolution.

Trump vowed on Thursday to “totally demolish” Iranian forces, telling NBC he wanted to “clean out” Iran’s leadership structure and had names in mind to take over. That suggested the U.S. sees regime change as the ultimate goal, having pushed back against the idea earlier in the conflict.

The U.S.-Israeli war has left at least 1,332 people dead in Iran so far, and dozens of others have been killed elsewhere in the region in retaliatory strikes. Six U.S. troops have been killed, all in the first two days of fighting. In all, around a dozen countries have been embroiled in the conflict.

Iran is poised to elect a successor to Supreme Leader Ali Khamenei, who was killed on Feb. 28, the first day of the war. Mojtaba Khamenei, the slain leader’s second-oldest son, is in the running. Trump said he was a “lightweight” who wouldn’t change the regime’s policies and insisted on being personally involved in picking the country’s next leader.

Airlines remain hamstrung by the conflict, with the number of canceled flights to Middle East hubs surpassing 23,000 since fighting began. Thousands of passengers remained stranded in the Gulf region, although on Friday Emirates said it’s aiming for a return to full network operations in coming days.

Arab states reported intercepting Iranian projectiles overnight into Friday. Bahrain said a unit at its Sitra refinery, the region’s oldest, caught fire after being struck by a missile. Qatar thwarted an attack targeting Al Udeid Air Base, a U.S. military facility. The U.S. suspended operations at its embassy in Kuwait.

Saudi Arabia said it had intercepted multiple missiles and drones overnight. The kingdom is diverting millions of barrels of crude to a port on its Red Sea coast, helping the world’s top exporter maintain supplies.

Countries in Europe and Asia are moving to bolster the region’s defenses. Italy intends to send air-defense systems, as well as counter-drone capabilities, to the Gulf, Defense Minister Guido Crosetto said Thursday.

South Korea said it’s in talks with the U.S. about the possible redeployment of weapons, including Patriot air-defense systems. France has authorized U.S. military support aircraft not involved in operations in Iran to use Istres Air Base, AFP reported.

NATO said it was boosting its missile defense posture following the downing on Wednesday of an Iranian missile heading toward Turkish airspace.

Israel Defense Forces Chief of Staff Eyal Zamir said strikes have neutralized more than 60% of Iran’s ballistic missile launchers. Iran’s navy has also suffered devastating losses.

Defense Secretary Pete Hegseth told reporters “it could be six, it could be eight, it could be three” weeks before operations are concluded. Trump told Politico the U.S. has an “unlimited supply of weapons.”

“Iran is hoping we cannot sustain this,” Hegseth told a news conference later at Central Command’s headquarters in Florida. “Our capabilities are overwhelming and gathering still, as are those of our Israeli partners. Our munitions are full up.”

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—With assistance from Omar Tamo, Dana Khraiche, Dan Williams, Fiona MacDonald and Mike Cohen.

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