While the conflict between the US and Iran continues, Brent crude oil prices surged above USD 120 per barrel on Thursday. The surge happened after US President Donald Trump said the naval blockade of the Strait of Hormuz would continue until Iran agrees to a deal with the United States.
Speaking to the American media on Wednesday, Trump said the blockade is being used as a key tool to pressure Iran over its nuclear programme, as per ANI.
The US President further said, “The blockade is somewhat more effective than the bombing. They are choking like a stuffed pig. And it is going to be worse for them. They can`t have a nuclear weapon,” as per ANI.
Furthermore, Trump had also rejected Iran`s proposal to first reopen the Strait of Hormuz and lift the blockade before holding nuclear talks. Instead, he has insisted that Iran address US concerns before any easing of restrictions.
Trump views the Hormuz blockade as his primary leverage
The report added that while Trump currently views the blockade as his primary leverage, he could consider military action if Iran does not agree to negotiations. However, he declined to discuss any specific military plans during the interview.
The development comes amid rising tensions in West Asia and concerns over disruption in global oil and gas supplies. The Strait of Hormuz is a key route for energy shipments, and any prolonged blockade is expected to impact global markets.
Experts suggest, ‘World may face severe economic consequences`
Reacting to the situation, renowned economist Jeffrey Sachs warned that the world economy could face severe consequences due to the ongoing crisis.
“The world economy will suffer a terrible crisis,” Sachs said while addressing the FICCI Legend Series, highlighting the risks posed by sustained supply disruptions.
He further said that the current situation reflects a fragile balance in global energy markets and cautioned that prices could rise further if supply shortages continue.
The economist further added, “The betting is that somehow that shortage will be alleviated… but if it isn`t, the price will continue to rise,” as per ANI.
Sachs noted that the combination of geopolitical tensions and rising oil prices could lead to broader economic instability across countries.
The continued surge in crude prices is being closely watched by global markets, as prolonged disruptions in the Strait of Hormuz could further tighten supply and push prices higher in the coming period.
(With inputs from ANI)