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European Oil Markets
27JUL

Trump threatens new target groups

2 min read
10:27UTC

A Truth Social post expands stated US war aims to unnamed categories of targets — language without precedent in modern presidential rhetoric and with direct implications under the laws of war.

EconomicDeveloping

President Trump posted on Truth Social on Saturday morning: "Today Iran will be hit very hard! Under serious consideration for complete destruction and certain death, because of Iran's bad behavior, are areas and groups of people that were not considered for targeting up until this moment in time." Bloomberg ran the headline: "Trump Says US May Target New Parts of Iran." The phrase has no precedent in modern US presidential targeting rhetoric. Prior targets in this campaign have been military: IRGC bases, missile sites, naval vessels, air defences, command infrastructure.

The statement extends a trajectory documented across eight days. Trump demanded unconditional surrender on 5 March , then issued immunity-or-death ultimatums directly to IRGC commanders via social media . CENTCOM was subsequently directed to "dismantle the Iranian regime's security apparatus" — a war aim encompassing the IRGC, Basij, MOIS, and internal security forces , materially different from the campaign's opening framing of nuclear facilities and missile infrastructure. Each step broadened the stated objective. None was accompanied by a diplomatic mechanism to give it operational meaning. Foreign Minister Araghchi publicly closed the door on negotiations . The Egypt-Turkey-Oman mediation has produced no confirmed participants. Congress has rejected war authorisation in both chambers — 212–219 in the House and 47–53 in the Senate .

"Areas" not previously considered could mean cultural heritage sites, civilian government buildings, or infrastructure sustaining the civilian population — power grids, water treatment, telecommunications. "Groups of people" could refer to remaining IRGC leadership, civilian government officials, or religious figures. The United States is not party to Additional Protocol I of the Geneva Conventions but is bound by customary International humanitarian law, including the principle of distinction — the requirement to differentiate between military objectives and civilian objects. The DoD Law of War Manual, which governs US forces, prohibits attacks directed at the civilian population as such. Commanders who receive orders derived from this statement must evaluate them against these requirements. Under the Uniform Code of Military Justice, personal criminal liability attaches to service members who knowingly execute unlawful orders.

Trump separately cast Pezeshkian's televised apology as a form of surrender. Pezeshkian explicitly rejected the unconditional surrender demand, calling it "a dream that they should take to their grave." The forces Trump now threatens to target more expansively are the same forces Iran's own civilian president cannot control — the IRGC's 31 autonomous provincial commands continued striking Dubai, Saudi oil facilities, and Bahrain within hours of Pezeshkian's halt order. Widening the target set does not resolve the command fragmentation that makes negotiated de-escalation difficult. It compounds the problem by eliminating whatever remains of the institutional structure a future interlocutor would need to enforce a ceasefire.

First Reported In

Update #26 · President orders halt; IRGC ignores him

Bloomberg· 7 Mar 2026
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Causes and effects
This Event
Trump threatens new target groups
The statement extends a documented rhetorical escalation from military strikes through unconditional surrender demands to undefined targeting categories potentially encompassing civilian populations, creating legal obligations for US military commanders to evaluate resulting orders against the DoD Law of War Manual and the principle of distinction.
Different Perspectives
Asian buyers (India, Japan, China, South Korea)
Asian buyers (India, Japan, China, South Korea)
Asian refiners are absorbing 62% of Yanbu's 3.75m b/d flow, the bulk of Saudi Arabia's rerouted crude now clearing east rather than into the Atlantic basin. That destination split leaves Asian buyers more exposed to any single Yanbu-specific disruption than under the kingdom's normal multi-terminal export pattern.
Russia / Lukoil
Russia / Lukoil
Moscow loses the roughly $14-a-barrel legal headroom the frozen price-cap formula would otherwise have released toward $58, even as Urals trades below Russia's own $59 budget floor. The shadow-fleet insurance workaround the freeze leaves untouched remains the actual route sanctioned crude clears above $44 in practice.
European Union / Council
European Union / Council
Brussels adopted its 21st sanctions package on 23 July, letting boarding states confiscate and sell shadow-fleet cargo outright and freezing the G7 price cap's automatic adjustment to mid-2027, converting indefinite tanker storage into recoverable value for enforcers.
Freight and tanker desks
Freight and tanker desks
The Baltic Exchange's TD3C VLCC benchmark, most desks' reference for Gulf freight, prices a single-vessel voyage while Saudi shippers now pay for two Suezmax charters at roughly double the transit time. That gap leaves any book hedged purely on TD3C carrying unrecognised Suezmax basis risk on the bulk of Saudi rerouted volume.
Mediterranean refiners (Sines, Trieste, Augusta)
Mediterranean refiners (Sines, Trieste, Augusta)
Refiners already facing aframax rates up 198% month-on-month now watch Ain Sokhna draw 23% of Yanbu's rerouted crude through the same SUMED corridor they lean on for product backfill. Fujairah and ARA stocks near record lows leave little room to absorb a thinner Suez product flow.
Saudi Arabia
Saudi Arabia
Riyadh has rerouted its entire western-coast crude book through Yanbu and Suez since the 23 July Bab el-Mandeb embargo, absorbing a roughly $2m-per-voyage Suezmax premium on every diverted cargo. The kingdom's fiscal breakeven near $108 a barrel makes that freight cost, not the blockade itself, the more durable drag on export economics.