Tehran/Washington: Increasing tensions between the US and Iran have created new concerns in the global energy market. Following US President Donald Trump’s warning, Iran’s Islamic Revolutionary Guard Corps (IRGC) has taken a tough stance and indicated that if attacks continue in the region, oil supplies from the Strait of Hormuz will be completely stopped. The IRGC says that if the situation worsens, “not even a liter of oil will be allowed to pass through this route.” Experts believe that if this happens, it could have a serious impact on energy supply across the world and a sharp rise in oil prices could be seen.
Why is the Strait of Hormuz important?
The Strait of Hormuz is considered the world’s most important maritime oil route connecting the Persian Gulf to the Arabian Sea. A large part of the global seaborne oil trade passes through this route. Big oil producing countries like Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Bahrain and Iraq send a major part of their exports through this route. Therefore any kind of disruption here directly affects the international market.
What warning has Iran given to America?
IRGC has clearly stated that if US and Israeli attacks on Iran continue, the oil supply from the region can be completely stopped. Iran says that this step can be taken as a retaliatory action. According to Iranian officials, if the situation remains war-like, oil transportation not only in the Strait of Hormuz but in the entire surrounding area may be affected.
What did Donald Trump say?
US President Donald Trump has warned that America will take strong military action if Iran tries to stop the movement of oil through the Strait of Hormuz. Trump said that in such a situation Iran would have to face a “twenty times stronger response.” He says that America will not allow the global energy supply to be disrupted and if necessary, drastic measures will be taken.
Why are experts expressing fear of global crisis?
Experts on international energy affairs believe that any kind of blockade in the Strait of Hormuz can create a serious crisis for the world. According to expert Shanaka Anslem Perera, if this route is closed then panic can spread in almost every energy market of the world. This may cause a sudden surge in oil prices and fuel may become expensive in many countries.
Has tension increased in this area before?
In the last few years, tensions have increased several times in the Persian Gulf and the Strait of Hormuz. The region continues to be the center of global politics due to attacks on ships, seizure of tankers and military activities. As the conflict between America and Iran increases, concerns about the security of this route also increase.
What could be the impact on the world economy?
Experts say that if oil supply is disrupted, its impact will not be limited to the energy market only. A rise in oil prices could also increase the costs of transportation, industry and food supplies. Due to this, there is a possibility of increasing pressure on inflation in many countries. This is why the eyes of the world are currently focused on the Strait of Hormuz and the increasing tension between America and Iran.
