Iran Warns of $200 Price Tag for Oil Passage Through Strait of Hormuz

Iran’s Islamic Revolutionary Guard Corps (IRGC) has announced that it will not permit any vessels linked to the United States and Israel or their allies to pass through the Strait of Hormuz during its closure. The statement was made by a spokesperson for the IRGC’s Khatam al-Anbiya Headquarters, who warned that any such vessel would be considered a legitimate target.

The closure of the Strait of Hormuz, which accounts for approximately one-fifth of global oil supplies, has led to fluctuations in global oil prices. The US and Israel have been conducting military operations against Iran, prompting retaliatory missile and drone attacks across the Middle East.

In response to the ongoing conflict, 400 million barrels of oil are being released from emergency reserves by the International Energy Agency (IEA). This move aims to alleviate the immediate impacts of the disruption in global markets. The IEA’s Executive Director, Fatih Birol, stated that the resumption of transit through the Strait of Hormuz is crucial for restoring stable flows of oil and gas.

Several countries have announced plans to release their emergency oil reserves, including Germany, Austria, and Japan. German Economy and Energy Minister Katherina Reiche confirmed that her country will comply with the IEA’s request, while Austrian officials also stated they would make part of their reserve available. Japanese Prime Minister Sanae Takaichi announced that Japan would begin releasing its private and national oil reserves on Monday.

The duration of the conflict remains uncertain, adding to concerns about further disruptions in global energy markets. Maritime security experts have warned that a prolonged closure of the Strait of Hormuz could lead to a major shipping crisis, with potential consequences for the global economy.

Source: Al Jazeera