Strait of Hormuz closed, ships passing will be burned: Iran
What's the story
Iran has closed the Strait of Hormuz, a major global oil transit route, and warned it will attack any ship trying to pass through. Ebrahim Jabari, a senior adviser to the Islamic Revolutionary Guard Corps (IRGC) commander-in-chief, said on Monday: "The strait is closed. If anyone tries to pass...the heroes of the Revolutionary Guard and the regular navy will set those ships ablaze."
Retaliation move
We will also attack oil pipelines: Jabari
The closure comes after United States and Israeli airstrikes on Iran that killed its Supreme Leader Ayatollah Ali Khamenei and other senior officials. In retaliation, Iran has targeted key infrastructure affecting global energy production. Jabari said, "We will also attack oil pipelines and will not allow a single drop of oil to leave the region." He predicted oil prices could soar to $200 soon.
Official
'Not even drop of oil will reach US'
"The Americans, with debts of thousands of billions...are dependent on the region's oil, but they should know that not even a drop of oil will reach them," he was also quoted as saying by Tasnim news agency. The Strait of Hormuz, which lies between Iran and Oman, is a key oil transit route for around 20% of the world's oil supplies. Any disruptions to this route could lead to a spike in crude prices and fears of a regional escalation.
Price surge
Natural gas prices in Europe surged by nearly 50%
Energy prices have already risen sharply after tanker traffic disruptions through the strait and damage to production facilities due to US-Israeli attacks on Iran. Natural gas prices in Europe surged by nearly 50%, while Asia saw a nearly 40% jump after QatarEnergy suspended liquefied natural gas production due to attacks on its facilities. Drones had also targeted Saudi Arabia's Ras Tanura oil refinery earlier, but its defenses shot down the inbound aircraft.
Escalation concerns
US said it will take steps to mitigate rising energy
The US has said it will take steps to mitigate rising energy prices due to the ongoing conflict with Iran. "Starting tomorrow, you will see us rolling out those phases to try to mitigate against that... We anticipated this could be an issue," US Secretary of State Marco Rubio said.