Energy analysts warn the price of oil could go up by 40%, if the Middle East conflict continues through to June 2026.
The Strait of Hormuz, is somewhat open, following Iran’s missile at ships blocking the waterway by the United States (US ) navy.
In addition, Iran launched 21 attacks on merchant ships, and reportedly laid sea mines in the strait.
Experts like Fatih Birol (IEA), called the opening and closure of the Strait, as the “worst energy shock the world has ever seen, surpassing the oil crises of the 1970s and the Ukraine war.”
Before the conflict, the strait transported some 20% of the world’s crude oil and refined product supply including Liquefied Natural Gas (LNG).
Ebrahim Zolfaghari, Iran’s Spokesperson, labeled the U.S. blockade as “maritime piracy” and warned that any threat to Iran’s southern ports will trigger retaliation against ports across the Persian Gulf and the Sea of Oman.
President Donald Trump tweeted on Sunday, that the US would attack Iran’s power plants, on Monday, if no deal was struck.
“Iran decided to fire bullets in the Strait of Hormuz, a total violation of our ceasefire agreement.”
He went on to say the US loses nothing from the closure of the state, while Iran, is $500 million less, per day.
He also said he would be offering a new deal to Iran.
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