Iran said Wednesday it was ready for a long war of attrition that would “destroy” the world economy, after firing on two commercial ships and threatening any vessels from the US or its allies.
As Tehran tightened its chokehold on the Strait of Hormuz, a vital sea passage for the global oil trade, US President Donald Trump said the war would end “soon” as there was little left for US forces to target in Iran.
Oil prices have surged since February 28, when the United States and Israel attacked Iran, killed its supreme leader and plunged the Middle East into war.
In an attempt to manage price jumps, the International Energy Agency said its member countries would unlock 400 million barrels of oil from their reserves — the biggest such release ever.
With the conflict now in its 12th day, Iran’s Revolutionary Guard vowed to target “economic centres and banks” that it deems linked to US and Israeli interests, prompting more international firms to evacuate employees from Dubai.
But all eyes were on the Strait of Hormuz, through which 20 percent of global crude and LNG passes.
The US and Israel “must consider the possibility that they will be engaged in a long-term war of attrition that will destroy the entire American economy and the world economy”, Ali Fadavi, advisor to the Revolutionary Guards’ commander-in-chief, told state television.
Iran said it had struck the Liberian-flagged container ship Express Rome and the Thai bulk carrier Mayuree Naree because they had entered the strait “after ignoring the warnings of the IRGC naval forces”.
Oman’s navy rescued 20 crew members, but efforts were underway to find three more. Pictures shared by the Thai navy showed black smoke pouring out of the vessel.
Analysts say a prolonged closure of the strait, which also carries a third of the fertiliser for world food production, would have a devastating effect on the global economy, particularly in Asia and Europe.
Source: Insider Paper
