Iran's Leader Vows Gulf Closure
Iran's new Supreme Leader, Mojtaba Khamenei, vowed to keep the Strait of Hormuz closed and continue retaliating across Gulf oil routes. This stance has driven oil prices above $100 per barrel, rattling global markets. Gulf states are pushing for a ceasefire to avoid deeper entanglement, while minor drone incidents have occurred in Dubai, heightening regional anxieties.
Mojtaba Khamenei's first address as Supreme Leader, delivered via state television, called for the continued closure of the Strait of Hormuz as a key pressure tactic. He also demanded neighboring countries shut down all U.S. bases, vowing continued attacks against them. Khamenei's hardline stance underscores his close ties to the Revolutionary Guards Corps. The Strait of Hormuz is a vital shipping route, with approximately 20% of global oil and liquefied natural gas (LNG) supply passing through it. The closure has already disrupted oil and gas shipments, causing a significant drop in maritime traffic. Experts estimate that even with alternative pipelines, about 16 million barrels of oil per day are at risk due to the closure. The closure and regional instability have sent Brent crude prices surging, briefly hitting $100 a barrel before climbing to $120. Some analysts predict sustained economic warfare could push prices to $200 per barrel. The disruption also impacts fertilizer supplies, potentially exacerbating global inflation.
