Iran War: iran Speaker of the Parliament Mohammad Bagher Ghalibaf has mocked the statement of US President Donald Trump in which he had warned of a blockade near the Strait of Hormuz. Along with this, he also warned that if America takes such a step, oil prices will increase rapidly.
Ghalibaf criticized Trump while mentioning the prices of petrol in America. He shared a picture, which showed petrol prices near the White House. He also said that if there is a blockade, the American people will soon remember these prices, because oil prices can increase significantly.
What did Ghalibaf post?
Ghalibaf wrote on social media platform Ghalibaf directly said that the steps Trump is taking will have a direct impact on oil prices.
Will oil prices increase?
He also shared an equation — “ΔO_BSOH>0 ⇒ f(f(O))>f(O)” — along with a screenshot of Google Maps showing fuel prices in the US. This equation was interpreted to mean that if the blockade of Hormuz increases, oil prices will not just increase normally, but will increase rapidly and continuously. That is, once the price increases, its effect will take the prices higher more rapidly. Here ‘BSOH’ means blockade of the Strait of Hormuz.
Iran says that when supply decreases, prices increase and the effect of that increase further increases prices, thereby increasing pressure on consumers.
What steps is America taking?
Here, America has started preparations to impose blockade in the Strait of Hormuz. President Trump announced that the US Navy will begin stopping ships entering and leaving Iranian ports. This decision has been taken after the failure of ceasefire talks between Washington and Tehran, which were held in Pakistan.
The United States Central Command confirmed that the blockade will come into effect on Monday at 10 am EDT, which is 5:30 pm Iran time. CENTCOM said that this blockade will apply to all ports and coastal areas of Iran, including the areas of Persian Gulf and Gulf of Oman. It was also said that this rule will apply to ships of all countries.
What is the impact on oil prices at present?
However, what has been done is that ships traveling between ports in countries other than Iran will be allowed to pass through the Strait of Hormuz, keeping some trade routes open. This announcement had an immediate impact on the global oil market. Crude oil prices increased by about 11 percent and crossed $ 105 per barrel.
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