Not ‘a litre of oil’ to pass Strait of Hormuz, expect $200 price tag: Iran

Iran’s Islamic Revolutionary Guard Corps (IRGC) says it will not allow “a litre of oil” through the Strait of Hormuz as the closure of the key Gulf waterway continues to roil global energy markets during the US-Israeli war on Iran. A spokesperson for the IRGC’s Khatam al-Anbiya Headquarters said on Wednesday that any vessel linked to the United States and Israel or their allies “will be considered a legitimate target”. “You will not be able to artificially lower the price of oil. Expect oil at $200 per barrel,” the spokesperson said in a statement. “The price of oil depends on regional security, and you are the main source of insecurity in the region.”

Global oil prices have fluctuated wildly this week during continued US-Israeli attacks against Iran, which has retaliated by firing missiles and drones at targets across the wider Middle East. The closure of the Strait of Hormuz, through which about one-fifth of the world’s oil supplies transit, and production slowdowns in some Gulf countries have raised concerns of further disruptions. Concerns around the duration of the war, which began on February 28 and has shown no sign of abating, are also adding to uncertainty, sending oil prices soaring. On Wednesday, three ships were hit by projectiles in the Strait of Hormuz, maritime security and risk firms said, including a Thai-flagged cargo vessel that came under attack about 11 nautical miles (18km) north of Oman. Despite the risks to maritime traffic, US President Donald Trump encouraged ships to continue transiting the Strait of Hormuz on Wednesday. “I think they should,” Trump said when asked whether vessels should pass through the waterway. 

“I think you’re going to see great safety, and it’s going to be very, very quickly,” Trump said. Earlier, UN aid chief Tom Fletcher called for “exemptions” for aid to transit the strait, warning that humanitarian supplies were not reaching “areas of key need in sub-Saharan Africa”. “We’re appealing to all the parties to try and secure those routes, including the Strait of Hormuz, for our humanitarian traffic … so we can reach anyone, anywhere, on the basis of greatest need,” Fletcher said. “We’re living through a moment right now of grave peril,” Fletcher added.