The Strait of Hormuz situation remains tense! Iran warns the U.S.: Get ready for $200 oil prices

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Source: Cailian Press

Cailian Press, March 12 — (Editor: Bian Chun) On the same day that the International Energy Agency (IEA) announced the largest-ever release of strategic oil reserves, Iran issued a statement to the world, saying it is ready for oil prices to reach $200 per barrel. Meanwhile, more commercial ships have been attacked in the Gulf waters.

According to reports from CCTV International and other media, Hatem Anbia Central Command of Iran emphasized on Wednesday (March 11) that any ships belonging to the U.S., Israel, or their partners, or carrying their oil cargoes, are considered legitimate targets for Iran’s armed forces.

The spokesperson stressed that Iran’s previous “reciprocal retaliation” has ended. From now on, Iran will implement a “chain reaction” strategy, no longer maintaining a one-to-one retaliatory pace.

The spokesperson also warned that Iran is fully capable of blocking the Strait of Hormuz. He clearly stated, “We will never allow even a single drop of oil to pass through the Strait of Hormuz under circumstances favorable to the U.S. and its allies.”

He also said that Western attempts to lower global oil and energy prices through external intervention are doomed to fail.

“Get ready for oil prices to rise to $200 per barrel, because oil prices depend on regional security, and that’s exactly what you’ve been destroying,” the spokesperson told Washington.

This spokesperson has issued the “$200 per barrel” warning more than once. On March 8, he told the U.S. and Israel that if they can tolerate oil prices exceeding $200 per barrel, “then continue this game.”

Iranian Parliament Speaker Ali Larijani also said on the 9th that if the current conflict further escalates to infrastructure levels, the economic impact will last for a long time regionally and globally, and international oil prices could remain in triple digits for some time.

Tensions in the Strait of Hormuz remain high

The Strait of Hormuz, located between Iran and the UAE/Oman, is a major passage for Persian Gulf oil exports. About one-fifth of the world’s seaborne oil is transported through this narrow waterway, making it one of the most critical “choke points” in the global energy market.

Currently, tensions in the Strait of Hormuz continue to escalate. Recent reports indicate multiple ships have been attacked in the Gulf waters.

According to reports from CCTV and other media, a Thai cargo ship was attacked in the Strait of Hormuz on the 11th, suffering serious damage to its cargo hold.

The UK Maritime Trade Operations (UKMTO) stated on the 11th that a container ship reported being attacked and damaged near the UAE waters, with all crew members safe. The statement said the ship was attacked by a suspected but unidentified projectile about 25 nautical miles (approximately 46 km) northwest of Ras Al Hamra, UAE.

On the 11th, the Iranian Islamic Revolutionary Guard Corps issued a statement that a ship flying the Liberian flag, owned by Israel, was hit by Iranian gunfire and forced to stop after ignoring warnings. Another container ship, which insisted on illegally crossing the strait and ignoring warnings, was attacked by Iranian forces a few hours earlier.

In the early hours of the 12th, officials at Iraq’s southern ports reported that two foreign oil tankers were attacked and set on fire within Iraqi waters. The attack occurred at Umm Qasr port, located about 50 km south of the southern port city of Basra, on the west coast of Zubair Bay. Preliminary investigations suggest a speedboat loaded with explosives carried out the attack on the tankers.

U.S. President Trump stated on March 11 that the U.S. has sunk 28 Iranian mine-laying ships. Earlier reports indicated that U.S. intelligence agencies had begun to detect signs that Iran was preparing to deploy mines in the Strait of Hormuz.

Currently, there are no signs that ships can pass safely through the Strait of Hormuz.

President Trump announced last week that if necessary, the U.S. Navy would escort oil tankers passing through the Strait of Hormuz. However, so far, the U.S. military has not undertaken any escort operations.

Sources say that since the conflict with Iran began, the U.S. Navy has almost daily refused shipping industry requests for military escort through the Strait, citing high risks of attack. Military assessments suggest that Middle Eastern oil exports will continue to be disrupted.

On Wednesday, member countries of the International Energy Agency (IEA) agreed to release 400 million barrels of strategic oil reserves, the largest coordinated release in history. However, global oil prices still rose nearly 5% that day, as attacks on ships in the Strait of Hormuz heightened market fears of supply disruptions. Analysts believe that the IEA’s record-breaking release of oil reserves is still insufficient to ease these concerns.

In Thursday’s Asian trading session, oil prices continued to rise, with both WTI and Brent crude up over 7% so far. Brent is just one step away from returning to $100 per barrel.

(WTI Crude Oil Futures 15-minute Chart Source: Investing.com)

(Brent Crude Oil Futures 15-minute Chart Source: Investing.com)

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Editor: Zhao Siyuan