Donald Trump said the United States has made “great progress” in negotiations with Iran, raising the prospect of a deal to end ongoing hostilities, while warning of severe military consequences if talks fail and the strategically vital Strait of Hormuz remains closed.

In a post on Truth Social, Trump said Washington was engaged in “serious discussions” with what he described as a “new and more reasonable” Iranian leadership, suggesting a potential shift in diplomatic momentum after weeks of heightened tensions.

“There is a strong possibility that an agreement will be reached,” Trump wrote, adding that the US is pursuing negotiations under a “new and more reasonable system.”

However, the US president coupled his optimism with a stark warning. He said that if a deal is not reached “shortly” and if the Strait of Hormuz is not reopened for global trade, the United States would carry out extensive strikes on Iran’s critical infrastructure.

Trump specifically threatened to target Iran’s electricity generation facilities, oil wells, and Kharg Island, the country’s main oil export terminal, as well as desalination plants. He said these sites had so far been deliberately spared during ongoing military operations.

The Strait of Hormuz, through which roughly a fifth of the world’s oil supply passes, remains a key flashpoint in the crisis. Any prolonged disruption could have far-reaching consequences for global energy markets, pushing up oil prices and increasing shipping risks.

Analysts note that Kharg Island alone handles the majority of Iran’s crude exports, making it a critical node in the country’s energy infrastructure. Strikes on such facilities could significantly impact Iran’s economy and global oil supply chains.

Trump framed the potential military escalation, accusing Iran’s previous leadership of a decades-long “reign of terror.”

The remarks come amid ongoing regional tensions and backchannel diplomatic efforts reportedly involving mediators aimed at de-escalation.