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Spain’s President Pedro Sanchez warned the world stands at a “global tipping point,” demanding the opening of the Strait of Hormuz and the preservation of all Middle East energy infrastructure as the US-Iran war enters its fourth week.
Sanchez’s statement came hours after NATO Secretary General Mark Rutte confirmed that 22 countries are now coordinating a plan to reopen the strait, and Iran’s Parliament Speaker Mohammad Bagher Ghalibaf threatened to treat US Treasury bond buyers as military targets.
Spain Leads European Pushback on Hormuz Energy Threat
Sanchez posted on X (Twitter) that further escalation “could trigger a long-term energy crisis for all humanity,” adding that “the world should not pay the consequences of this war.”
Spain has already unveiled a €5 billion emergency package to offset the energy shock on households and businesses.
The statement aligns with a broader EU push. European leaders at the March 19 Brussels summit demanded the reopening of Hormuz and a moratorium on strikes against water and energy infrastructure, according to the AP.
However, Spain has rejected participating in any military operation to reopen the strait. Germany, Italy, and several other EU members have taken the same position, leaving the UK as the primary European partner in the US-led coalition effort.
NATO’s 22-Nation Hormuz Plan Lacks Firm Commitments
Rutte told CBS on Sunday that 22 countries, including Japan, South Korea, the UAE, and Bahrain, have joined a UK-led planning framework to secure Hormuz.
The group is working through three questions, according to Rutte. What is needed, when is it needed, and where.
An Axios report noted the joint statement does not yet include commitments to send naval vessels.
France initially opposed the effort before UK Prime Minister Keir Starmer and Rutte convinced President Macron to lift his objection.
Israel’s military spokesman separately confirmed the campaign against Iran and Hezbollah will continue for weeks, removing the short-war scenario that energy and rate markets had partially priced in.
Iran’s Treasury Threat Adds New Risk Layer to Bond Markets
Ghalibaf warned on X (Twitter) that US Treasury bonds are “soaked in Iranians’ blood” and said financial entities funding the US military budget would be treated as legitimate targets.
The threat came as Iran struck the Israeli towns of Dimona and Arad near the Negev nuclear research center on Saturday, per Euronews.
The statement introduces a sovereign debt risk dimension to a bond market already under severe strain. US 10-year yields hit 4.38% last week, their highest since July 2025, as global bonds sold off alongside equities rather than serving as a safe haven.
Meanwhile, the US Treasury lifted sanctions on approximately 140 million barrels of Iranian crude stranded at sea.
However, Global Markets Investor argues that these barrels were already flowing to China through dark-fleet channels, meaning the waiver adds no net new supply but gives Iran more buyers and higher revenue per barrel.
Iranian oil output reached 5.1 million barrels per day in 2024, the highest since 1978. The war is now disrupting peak-level production capacity in a market where Brent crude already trades above $112 per barrel.
With Spain calling this a tipping point, NATO planning but not yet acting, Iran escalating its rhetoric against the US financial system, and Israel confirming no end in sight, the gap between diplomatic warnings and military reality continues to widen.
For energy, bond, and crypto markets, the next catalyst is whether the 22-nation coalition moves from planning to deployment, or whether Hormuz remains closed into April.
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