Iran pressed on with attacks across the Persian Gulf hours before U.S. President Donald Trump’s deadline to agree to a ceasefire plan, clouding prospects for a breakthrough in efforts to end the war.

Freedom of navigation through the strategic Strait of Hormuz must be part of any agreement to resolve the conflict and the U.S. will destroy Iranian infrastructure including power plants and bridges if there’s no agreement by Tuesday 8 p.m. Eastern Time, Trump said at the White House on Monday.

The United Nations has warned that such indiscriminate targeting of civilian infrastructure could constitute a war crime. Trump said he’s “not at all” concerned about that potential outcome.

The U.S. leader’s latest ultimatum marks a critical juncture in the war that has killed more than 5,200 people, most of them in Iran and Lebanon, while energy facilities have been struck across the region. The president began issuing deadlines on March 21 to force Iran to reopen Hormuz and has repeatedly extended the timeline, but said Monday it’s “highly unlikely” he will do so again.

Israel is preparing for the possibility that fighting could continue for several more weeks, while markets remain volatile, with oil prices rising and stocks fluctuating.

Trump said talks with Iran are “going well” and that reopening the strait is “a very big priority.”

“We have to have a deal that’s acceptable to me, and part of that deal is going to be we want free traffic of oil and everything,” he said.

The U.S. military could destroy “every bridge in Iran,” he added. Power plants would be rendered “burning, exploding and never to be used again,” he said.

Iran has warned that it would respond to that type of escalation by ramping up its own attacks on energy infrastructure in the Gulf — a move that could heighten the global fuel squeeze and amplify damage to the world economy.

The Islamic Republic launched seven ballistic missiles and several more drones at Saudi Arabia overnight into Tuesday, and debris from interceptions fell in the vicinity of some energy sites, the kingdom said. A key bridge connecting Bahrain and Saudi Arabia was briefly closed as precaution.

The Israel Defense Forces reported two missile volleys from Iran since midnight, with the fire department reporting damage in Tel Aviv and nearby towns.

Israel approved further Iran missions for the coming three weeks if necessary, an IDF spokesperson said. The country is also fighting a parallel war in Lebanon against Tehran-backed Hezbollah, and struck targets in Beirut on Monday.

Oil rose for a third day as investors remained wary, with tentative ceasefire signals tempered by the risk of further escalation. Brent rose 1.5% to trade above $111 a barrel in Tuesday morning trade in London.

The dollar, which has emerged as the haven of choice during the Iran war, strengthened 0.1%.

Singapore’s top diplomat warned the economic fallout from the conflict could worsen and investors have yet to adjust. “I’m quite sure the markets are not fully pricing the worst-case scenario,” Foreign Affairs Minister Vivian Balakrishnan told Bloomberg Television at an Investment Management Association of Singapore conference.

Trump has struggled to find an off-ramp to a conflict that’s become increasingly unpopular with Americans, with average gasoline prices above $4 a gallon. He said Vice President JD Vance is involved in ceasefire negotiations along with special envoy Steve Witkoff, though Tehran on Monday rejected a ceasefire proposal.

“I can tell you that we have a active, willing participant on the other side,” Trump said. “They’re negotiating, we think in good faith — we’re going to find out.”

Iran has called for a permanent end to the war, reconstruction efforts and the lifting of sanctions, in addition to protocols for ensuring safe passage through Hormuz, according to Iran’s state-run Islamic Republic News Agency.

Iran’s offensive against the U.S. and Israel wouldn’t be affected by Trump’s threats, the agency reported, citing a spokesman for the nation’s joint military command.

Iran has said it would only allow strait operations to resume when it is compensated for damage from the war.

The Islamic Republic has brought traffic via Hormuz — through which a fifth of global oil and liquified natural gas exports typically flows — to a near standstill.

Two tankers loaded with Qatari LNG appeared to be making an exit from the Persian Gulf on Monday, only to U-turn within hours. They were denied clearance by Iranian officials, according to traders involved in the transit, who requested anonymity as they aren’t authorized to speak with media.

Tehran is allowing a trickle of vessels sail through the waterway, which it also uses for its own oil exports.

Trump lamented that he would like to take Iran’s oil for the U.S. but that the American public wants to wind down the conflict.

“I’m a businessman first,” Trump said when asked about the trade-off between seizing the oil supplies and public opinion. “And I’ve said, why don’t we use it — to the victor go the spoils? And we don’t have that.”

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—With assistance from Dana Khraiche.

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