Trump vows to maintain pressure on Iran through ‘incredible’ blockade
Washington: US President Donald Trump said he was sticking with a naval blockade of Iranian ports amid concerns that the vital Strait of Hormuz would not reopen anytime soon.
“Their economy is crashing, the blockade is incredible,” Trump told reporters at the White House. “Their economy is a disaster. So we’ll see how long they hold out.”
Oil prices steadied after surging on Thursday (US time) with little sign that Washington and Tehran were moving closer to an accord, as the US doubled down on a blockade and strident comments came from Iran’s new leader.
Brent futures initially rose to $US126 ($175) a barrel – their highest level since the conflict began – before ending the session near $US114. Early on Friday, Brent for July delivery was trading at about $US111 a barrel.
Traders are factoring in the possibility of a return to hostilities and a prolonged shutdown of the strait, which is crucial for global oil and gas flows but has effectively been shut since the US and Israel started the war on February 28.
As the manoeuvring between the US and Iran continued, Trump was due to be briefed at the White House on Thursday (US time) by Admiral Brad Cooper, head of US Central Command, which oversees American forces in the Middle East, and General Dan Caine, chairman of the Joint Chiefs of Staff, according to Axios, which cited two unnamed US officials. Axios reported earlier that Centcom had prepared a plan for a brief wave of strikes to break the negotiating deadlock.
Earlier on Thursday, Iran’s new supreme leader, Mojtaba Khamenei, cast doubt on the likelihood of a deal, giving a rare statement in which he vowed not to give up the country’s nuclear or missile technologies. He also signalled that Tehran would keep control of the Strait of Hormuz.
Iranian President Masoud Pezeshkian said in a social media post that he considered the US naval blockade an “extension of military operations”, and that it was “intolerable”.
“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 no longer whether he escalates to push for a better offer, but when and how. We think the most likely window for action is within the next two weeks, and that renewed US strikes are the most likely course.”
Iran has said it won’t reopen the strait to commercial vessels until the US lifts its blockade. It’s unclear how long Iran has left before it runs out of oil storage and is forced to cut production.
Bloomberg
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