Iran Threatens to Attack US Energy Assets in the Gulf
Tensions rise after attacks between Iran and the US
Amid escalating hostilities between Iran and the United States, the neighboring country announced that it could attack US oil and gas assets in the Gulf if Washington continues with new offensives. The threat comes shortly after the US response to attacks by the Islamic Revolutionary Guard Corps (IRGC) on American warships and the destruction of three Iranian oil tankers, including one near Kharg Island.
retaliation on the high seas
US Secretary of Defense Pete Hegseth warned that "if Iran fires on American ships, we will destroy (and sink) their tankers." In response, the speaker of the Iranian parliament, Mohammad Bagher Ghalibaf, said that the country's oil and gas production chain is "broad, accessible, and exposed," and that attacking these assets will trigger retaliation.
maritime exclusion zone
Mohsen Rezaei, secretary of Iran's National Security Council, announced that the economic war will be accompanied by a maritime exclusion zone in the Persian Gulf and the Gulf of Oman. The zone, which extends from the blockade line to the Strait of Hormuz, will place vessels transiting the Strait on an Iranian sanctions list.
impact on oil prices
Brent prices rose to nearly $100 per barrel following the attacks, reaching six-week highs of around $98.51. Commercial traffic through the Strait of Hormuz dropped from 138 vessels in 24 hours to just 12 on the last day, reflecting rising tensions and concerns over the safety of energy shipping routes.
negotiations at a standstill
Although the US and Iran signed a Memorandum of Understanding on June 17 to reopen the Strait of Hormuz and negotiate an end to the war, the agreement was short-lived. The latest 60-day agreement expired on August 17, and no new round of negotiations has been announced since then. The US demands the reduction of the Iranian nuclear program and guarantees of free passage through the Strait, while Iran calls for the lifting of sanctions, access to frozen assets, and a role in managing the Strait.
domestic economic consequences
Iran faces inflation of around 70%, a collapsing rial, and high unemployment. Economic pressure from the US, including blockades, sanctions, and the threat of secondary sanctions on trading partners, has crippled the Iranian economy, leading the country to consider creating a new restricted zone to increase global pressure.
international reaction
The United Kingdom has reintroduced economic sanctions against Iran, expanding trade bans and restricting the country's access to the British financial system. British Secretary of State Ed Miliband announced that the UK, along with allies, will take steps to report Iran to the UN Security Council over nuclear violations.
With information from Time Magazine.
Source: Time Magazine