As the war in the Middle East entered its fourth week, Iran is escalating its threats, setting its sights even on buyers of US Treasuries, in the latest flare-up of an ever-intensifying war of words, as the Trump administration's 48-hour ultimatum approached its expiration.
Threats against financial institutions
In a social media post on Sunday, the Speaker of the Iranian Parliament, Mohammad Bagher Ghalibaf, stated that financial institutions linked to the US that hold American government bonds will become targets, along with military bases. "American bonds are soaked in the blood of Iranians. If you buy them, you are buying a strike against your headquarters and your assets," Ghalibaf stated. "Alongside military bases, the financial entities that fund the US military budget constitute legitimate targets," he added.
The Trump ultimatum and the Hormuz threat
This escalation followed the 48-hour ultimatum issued on Saturday by Donald Trump toward Tehran, demanding the reopening of the Strait of Hormuz — a critical passage for global energy transit — otherwise, it will face attacks on its power generation units. The deadline expires Monday night in Washington.
Netanyahu support and call for international involvement
The Prime Minister of Israel, Benjamin Netanyahu, pledged to support the American threat, stating: "Whatever we do, we do together and, as much as possible, with discretion." Speaking from the site of an Iranian missile attack in the southern city of Arad on Sunday, Netanyahu called on world leaders, including European countries, to join the war efforts. "They have the capability to reach deep into Europe… they have put everyone in the crosshairs," he declared.
Retaliation and threat of total Hormuz closure
Iran responded by threatening to completely close the maritime passage and attack energy infrastructure and desalination plants in the Gulf if the US proceeds with its threats. Ghalibaf warned that any US or Israeli attack on Iranian energy facilities would trigger "immediate" retaliation against energy and oil infrastructure across the region, causing "irreparable" damage. "Critical infrastructure and energy and oil facilities across the region will be considered legitimate targets and will be irreparably destroyed, while oil prices will rise for a long time," Ghalibaf stated on the X platform.
Who holds US bonds
US Treasuries form the backbone of the global financial system, and their holders are not a limited group of investors, but an extremely broad and multi-layered network of sovereign states, banks, and institutional bodies. Internationally, the largest portfolios of American debt are held by states and central banks. Japan remains the largest holder, followed by countries such as the UK and China, which has been gradually reducing its exposure in recent years. Meanwhile, significant amounts are held by European countries and financial centers like Belgium, Luxembourg, and Ireland, which often act as intermediaries for funds belonging to third-party investors.
Overall, Europe as a whole constitutes one of the largest pillars of demand for American debt. At the same time, an even larger portion of bonds is held by private and institutional investors. This category includes banks, insurance companies, pension funds, mutual funds, and hedge funds. These organizations use US bonds as a core tool for risk management and liquidity, as they are considered the safest investment haven internationally. A special role is played by hedge funds, which often operate through complex and less transparent structures, holding large sums that are not fully reflected in official data.
A significant portion of American debt is also held within the United States itself. The Federal Reserve, state funds such as Social Security, as well as American banks and investment funds hold a large volume of bonds, contributing to market stability.
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