US President Donald Trump said Iran had indicated it was in a “state of collapse” and was seeking the urgent reopening of the Strait of Hormuz, even as efforts to end the two-month conflict remained deadlocked.
Conflict between the US, Israel and Iran has disrupted Strait of Hormuz shipping, exposing limited export alternatives. Existing pipelines offer partial relief, while proposed routes face major political, security and financial challenges.
Oil prices jumped on Wednesday (April 22) with Brent trading above $100 a barrel, erasing earlier losses following reports of gunfire attacks on at least three container ships in the Strait of Hormuz.
deVere Group CEO Nigel Green warns that closing the Strait of Hormuz would trigger a sharp oil price surge beyond previous spikes and cause intensified market volatility as blockade risks become more plausible.
US President Donald Trump has lashed out at allies for not getting further involved in the Iran war, telling them to go to the Strait of Hormuz to take their own fuel and securing the strait is "not for us."
Crude oil supplies from Iraq and Kuwait could start shutting in within days if the Strait of Hormuz remains closed, potentially cutting 3.3 million barrels per day (bpd) by day eight of the Middle East conflict, JP Morgan analysts said in a note.
Oil prices turned lower in Asian trading on Tuesday as markets reacted to reports that Donald Trump had indicated to aides he was prepared to bring the conflict with Iran to an end without insisting on the immediate reopening of the Strait of Hormuz.
The prolonged closure of Strait of Hormuz, lasting significantly longer than a month, would negatively affect global chemical production, with Mideastern and Asian producers most affected. Chemical production costs may hit a new high and global supply chains could get disrupted, said a report.
US President Donald Trump spoke to Indian Prime Minister Narendra Modi on Tuesday about the West Asia situation, including the need to secure the key energy waterway, Strait of Hormuz, that remains under an Iranian blockade. Modi reiterated India’s support for de-escalation and restoration of peace at the earliest.
Indian Prime Minister Narendra Modi held talks with Iranian President Masoud Pezeshkian and Bahrain's King Hamad bin Isa Al Khalifa to discuss the evolving situation in the Middle East. He condemned the attacks on critical GCC infrastructure and emphasised the need to ensure secure maritime routes.
