New Delhi: On Thursday, amid the ongoing blockade on Hormuz, crude oil prices broke the record of the last four years and reached $126 per barrel. Iran reacted to the oil prices and said that the US blockade had no effect on its oil production, on the contrary, oil prices increased. Iran said that oil prices will go up to $140 per barrel. Meanwhile, America, troubled by the rising oil prices, has sent a secret message to the countries of the world to form an international coalition to restore the movement of ships in Hormuz.
The US State Department sent this message to countries in a secret diplomatic cable. Reuters has seen the cable and is reporting on its basis. Two months after the US-Israeli war on Iran, which began on February 28th, the Strait of Hormuz, a vital sea route, remains closed, affecting 20% of the world’s oil and gas supplies. This has led to a surge in global energy prices and increased the risk of an economic recession.
Efforts to resolve the Iran-US conflict have stalled. The US is attempting to break the ongoing deadlock in negotiations by imposing a naval blockade on Iran’s oil exports. Oil exports are the lifeblood of Iran’s economy, and the blockade is causing significant losses.
Why did oil prices suddenly rise?
An Axios report revealed that the US President is scheduled to hold a briefing on Thursday on plans for new military strikes against Iran amid stalled negotiations. He is attempting to bring Iran to the negotiating table and may take major steps against it. Following this news, oil prices surged, with benchmark Brent crude at one point reaching above $125 per barrel, partly due to technical reasons related to contract expiry.
Brent prices have more than doubled since the start of the year and on Thursday reached their highest level since March 2022, fueling inflation and sending gasoline prices soaring worldwide. Iran has said it will continue to block ships passing through the Strait of Hormuz as long as the threat persists. Iran warned on Wednesday that it would take major military action if the US blockade of Iranian-linked ships continues. Meanwhile, Trump has once again stated that he will not allow Iran to possess nuclear weapons, while Tehran maintains that its nuclear program is peaceful.
“They don’t know how to make a non-nuclear agreement. They need to get smarter,” Trump said in a social media post, though he didn’t specify what such an agreement would look like. The post also included a photo of him wearing dark glasses and holding a machine gun, with the caption, “I’m no longer Mr. Nice.”
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