US and Iran tensions rise in Strait of Hormuz amid rising oil prices

US President Donald Trump has stated that he is considering taking control of the Strait of Hormuz to ensure its continued operation. The strait, which connects the Gulf to the Gulf of Oman, is a critical route for oil producers in the region and accounts for approximately one-fifth of global oil supply.

The Iran war, now in its 11th day, has led to increased tensions in the Middle East, with attacks on US military assets and infrastructure in several countries. Iran has also threatened to disrupt shipping through the Strait of Hormuz, which would have severe consequences for the global energy market.

Ebrahim Jabari, a senior adviser to the commander-in-chief of Iran’s Revolutionary Guard Corps, recently stated that the strait is closed and that any ships attempting to pass would be attacked. He also warned that oil prices could reach $200 in the coming days.

As a result, oil prices have increased by over 30% since the war began on February 28, with the international benchmark Brent crude reaching $119 per barrel at one point. The price has since declined, but remains above pre-war levels. QatarEnergy, the world’s largest producer of LNG, has also halted production following Iranian attacks on its facilities in Qatar.

Saudi Arabia has shut down operations at a major oil refinery after a fire broke out due to debris from intercepted drones. Iranian officials have denied attacking these facilities.

Industry experts warn that the volatility in energy markets caused by the war will worsen over time, with potentially catastrophic consequences for the global economy. Aramco CEO Amin Nasser stated that the longer the disruption persists, the more drastic the consequences will be.

US President Trump has threatened to increase attacks on Iran if it disrupts oil flow through the Strait of Hormuz, stating that the US would respond “twenty times harder” than previously. He also expects the war to be over in a short amount of time and believes that the US military has the capability to last longer than initially anticipated.

Source: Al Jazeera