President Donald Trump has threatened to “obliterate” Iran’s power plants if the Strait of Hormuz is not reopened within 48 hours. Meanwhile, Iranian missiles successfully bypassed Israeli defenses, striking Dimona and Arad, where a mass casualty event was declared.
Israel has retaliated with wide-scale strikes on over 200 targets in Iran and Lebanon. Iran attempted to strike the US-UK military base in the Indian Ocean, raising serious alarms regarding the long-range reach of Tehran’s missile technology. Additionally, Saudi Arabia expelled five Iranian diplomats following continued strikes on Gulf neighbours, while the military intercepted missiles and drones targeting Riyadh and the eastern regions. All affected nations reported intercepting multiple ballistic missiles and UAVs over a 24-hour period.
However, 22 nations, recently joined by the UAE and Australia, are discussing military escorts for tankers to secure the Strait of Hormuz, drawing parallels to the Tanker War of the 1980s. Since the conflict began on February 28, natural gas prices have nearly doubled, with a 13% spike occurring last Thursday.
The European Commission has urged member states to lower gas storage targets by up to 20 percentage points to alleviate extreme upward pressure on energy prices and manage unfavourable market conditions. Following the escalating crisis, global oil prices surged, hitting $110 per barrel as the strikes on energy infrastructure across the Middle East jolted markets.
While prices are still significantly above their pre-war levels, they are below the peaks reached earlier in the conflict, when crude nearly hit $120 a barrel.
Around 20% of the world’s oil and liquefied natural gas shipments pass through the strait, making it critical for global energy supplies. Iran’s blockade and attacks on ships in the Strait have seen oil prices soar over recent weeks.
US officials have been rigorously trying to avert a potential months-long closure of the strait, privately acknowledging that reopening the key waterway is a problem without a clear solution.
