Global oil chaos erupted again yesterday as Donald Trump suggested that the U.S. might take control of the Strait of Hormuz to curb rising oil prices.
This strategic waterway, which carries nearly a fifth of the world’s oil, has been largely blocked by Iran since the conflict began.
Brent crude oil briefly surged to $118.60 (£90) before stabilising just over $100, causing panic in markets around the globe.
Iran’s Islamic Revolutionary Guard Corps has warned that it will not allow “a litre of oil” to pass through the strait unless U.S. and Israeli strikes come to an end. Reports have also surfaced about cargo vessels being struck by unidentified projectiles.
Markets are concerned about the possibility of a full-blown energy crisis if tensions escalate further. Trump has stated that the U.S. is in “very good shape” regarding the conflict. Investors are closely monitoring each flare-up, knowing that any disruption could drive fuel prices even higher.
The ongoing standoff threatens not only oil markets but also global shipping, trade, and energy security, as the world waits to see if the Strait of Hormuz will become the next flashpoint in an increasingly intensifying conflict in the Middle East.
Iran’s Islamic Revolutionary Guard Corps (IRGC) warned on Tuesday that shipping will be blocked from entering or leaving the Strait of Hormuz, and they vowed not to let “a litre of oil” through the region.
Despite the fact that many innocent ships have been attacked by the IRGC, Trump said: “The straits are in great shape.”
On Wednesday, Trump said, “We’re just riding free range over that country, and now we’re going to look very strongly at the straits.”
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