Kate Sullivan
Washington: US President Donald Trump said he is maintaining a naval blockade of Iranian ports amid concerns that the Strait of Hormuz will not be reopened soon.
“Their economy is collapsing, the impasse is incredible,” Trump told reporters at the White House. “Their economy is a disaster. So we’ll see how long they last.”
Oil prices rose after rising on Thursday (US time) on little sign that Washington and Tehran are nearing a deal, with the US doubling down on sanctions and tough comments from Iran’s new leader.
Brent futures initially rose to $US126 ($175) a barrel – their highest level since the crisis began – before ending the session near $US114. Earlier on Friday, Brent for July delivery was trading at around $US111 a barrel.
Traders are concerned about the possibility of a return to hostilities and a prolonged shutdown of the canal, which is crucial for the flow of oil and gas to the world but has been closed since the US and Israel began war on February 28.
While the intrigue between the United States and Iran continues, Trump should have been White House statement Thursday (US time) by Admiral Brad Cooper, head of US Central Command, which oversees US forces in the Middle East, and General Dan Caine, chairman of the Joint Chiefs of Staff, according to Axioswhich named two unnamed US officials. Axios previously reported that Centcom had planned a short wave of strikes to break the negotiation deadlock.
Earlier on Thursday, Iran’s new supreme leader, Mojtaba Khamenei, cast doubt on the possibility of a deal being reached, making a rare statement in which he vowed not to give up the country’s nuclear or missile technology. He also indicated that Tehran will maintain control over the Strait of Hormuz.
Iranian President Masoud Pezeshkian said in a social media post that he regards the US naval blockade as “escalating military operations”, and that it is “unacceptable”.
“Trump wants to end the Iran war, but not on the terms proposed by Tehran,” said Becca Wasser and Chris Kennedy, analysts at Bloomberg Economics. “That suggests the question is not whether he will step up to push for a better offer, but when and how. We think the most likely action is within the next two weeks, and that a new US strike is the most likely.”
Iran has said it will not reopen the strait to commercial shipping until the US lifts its blockade. It is unclear how much time Iran has left before it runs out of oil reserves and is forced to cut production.
Bloomberg
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