Oil Prices Could Reach US$130 Per Barrel If Iran Closes Strait Of Hormuz
ANKARA, June 16 (Bernama-Sputnik/RIA Novosti) - Oil prices could surge to US$130 per barrel if Iran decides to close the Strait of Hormuz, reported Sputnik/RIA Novosti quoting a Turkish newspaper Hurriyet report on Monday.
Esmail Kowsari, a member of the Iranian parliament's National Security and Foreign Policy Committee, said on Saturday that Tehran is considering shutting the strait in response to Israeli attacks.
The strait handles 20 per cent of global oil shipments and 80 per cent of the oil and liquefied natural gas (LNG) trade for Iran, Saudi Arabia, and the UAE.
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The newspaper predicts that the Israel-Iran conflict will persist for some time, adding that the impact of the war on the economy depends on the duration and escalation of attacks. A prolonged conflict could devastate economies, but if it ends within 14 days as planned, the effects would be limited.
The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman. Ships then enter the Arabian Sea and the Indian Ocean. The strait's northern coast belongs to Iran, while the southern part to Oman and the UAE. The strait handles 10–20 per cent of global oil and approximately 20 per cent of LNG shipments.
On the night of June 13, the Israel Defence Forces (IDF) launched a large-scale operation dubbed Rising Lion, in which the Air Force strikes military targets and facilities of Iran's nuclear programme. The Israeli Air Force carried out several waves of attacks in various parts of Iran, including Tehran, where several senior Iranian military officials were killed, including the chief of the Iranian Armed Forces General Staff and the IRGC commander, as well as several nuclear scientists. Several nuclear facilities, including Natanz and Fordow, and Iranian military positions in various parts of the country were hit as well.
Iran's Supreme Leader Ayatollah Ali Khamenei called the strikes on Iran a crime in a message to citizens, saying that Israel would face a "bitter and terrible fate."
The IRGC said the Islamic Republic had launched Operation True Promise III against military targets in Israel in response to the attacks.
--BERNAMA-SPUTNIK/RIA NOVOSTI
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