Inflation 'disaster' looms if Iran's leaders sign off on response to US strikes
Shutting the vital Strait of Hormuz would be bad news for economies around the world, experts have warned after the measure was passed by Iran's parliament today
The world could soon be braced for an inflation 'disaster' after Iran's parliament approved closing the key Strait of Hormuz. A whopping 20 percent of global oil and gas goes through the strait and its closure could create the same kind of inflationary shocks that the world felt after Russia invaded Ukraine in 2022.
The decision is not final and is now with the Supreme Leader Ayatollah Ali Khamenei and the country's Supreme National Security Council, according to Iranian state TV.. It comes afte r a surprise attack on three of the country's nuclear sites by the US.
The move, according to Revolutionary Guards Commander Esmail Kosari 'will be done whenever necessary'. He said to the Young Journalist Club: 'Our hands are wide open when it comes to punishing the enemy, and the military response was only part of our overall response.'
The impact of the strait closing would be 'catastrophic' according to business expert Gerrit Heinemann, who spoke to the german news outlet BILD. '[It would be] worse than Corona and Putin combined! The second episode of the ongoing crisis would be even more severe than what we experienced at the beginning of the Ukraine war and during the Corona years. A disaster.'
He continued: 'A large part of the global supply chains runs through the affected region. This not only dramatically impacts energy supplies, but also the flow of goods. All of a sudden, all the crises we had just overcome would return: the energy crisis, inflation, disrupted supply chains, and now the threat of mass unemployment.'
The strait separates Iran and Oman and is only 21 miles across. As a result it is vulnerable to attacks.
There has already been an impact on oil prices following the outbreak of war between Iran and Israel, climbing by 21% in the financial markets over the past month.
The Trump administration has signalled a willingness to renew talks with Iran and avoid a prolonged war in the aftermath of its strikes on Iran, known as Operation Midnight Hammer. Defence secretary Pete Hegseth said at a news conference that America 'does not seek war' with Iran while vice president JD Vance said the strikes have given Tehran the possibility of returning to negotiate with Washington.
Much of the world is absorbing the consequences of the strikes and the risk that they could lead to more fighting across the Middle East after the US inserted itself into the war between Israel and Iran. Air strikes starting on June 12 by Israel that targeted Iran's nuclear facilities and generals prompted retaliation from Iran, creating a series of events that contributed to the US attack.
Prime minister Sir Keir Starmer said the UK was moving military equipment into the area to protect its interests, people and allies, but that he was focused on finding a solution.
While US officials urged caution and stressed that only nuclear sites were targeted by Washington, Iran criticised the actions as a violation of its sovereignty and international law. Iran's foreign minister, Abbas Araghchi, said Washington was 'fully responsible' for whatever actions Tehran may take in response.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South Wales Guardian
30 minutes ago
- South Wales Guardian
Trump says he is open to regime change in Iran
'It's not politically correct to use the term, 'Regime Change,' but if the current Iranian Regime is unable to MAKE IRAN GREAT AGAIN, why wouldn't there be a Regime change???' Mr Trump posted on social media. 'MIGA!!!' The posting on Truth Social marked something of a reversal from defence secretary Pete Hegseth's Sunday morning news conference that detailed the aerial bombing on three of the country's nuclear sites. 'This mission was not and has not been about regime change,' Mr Hegseth said. "The damage to the Nuclear sites in Iran is said to be 'monumental.' The hits were hard and accurate. Great skill was shown by our military. Thank you!" –President Donald J. Trump — The White House (@WhiteHouse) June 22, 2025 Secretary of state Marco Rubio warned on Fox News that any retaliation against the US or a rush toward building a nuclear weapon would 'put the regime at risk'. Mr Trump's warning to Iran's leadership comes as the US has demanded that Iran not respond to the bombardment of the heart of a nuclear programme it spent decades developing. The Trump administration has made a series of intimidating statements even as it has simultaneously called to restart negotiations, making it hard to get a complete read on whether the president is simply taunting an adversary or using inflammatory words that could further widen the war between Israel and Iran that began earlier this month. Up until the president's post on Sunday afternoon, the coordinated messaging by Mr Trump's vice president, Pentagon chief, top military adviser and secretary of state suggested a confidence that any fallout would be manageable and that Iran's lack of military capabilities would ultimately force it back to the bargaining table. Mr Hegseth had said that America 'does not seek war' with Iran, while Vice President JD Vance said the strikes have given Tehran the possibility of returning to negotiate with Washington. But the unfolding situation is not entirely under Washington's control, as Tehran has a series of levers to respond to the aerial bombings, which could intensify the conflict in the Middle East with possible global repercussions. Iran can block oil being shipped through the Strait of Hormuz, attack US bases in the region, engage in cyber attacks or double down on a nuclear programme might seem like more of a necessity after the US strike. Mr Trump, who had addressed the nation from the White House on Saturday night, returned to social media on Sunday to lambast Republican Congress member Thomas Massie, who had objected to the president taking military action without specific congressional approval. 'We had a spectacular military success yesterday, taking the 'bomb' right out of their hands (and they would use it if they could!)' Mr Trump said as part of the post on Truth Social. At their joint Pentagon briefing, Mr Hegseth and Air Force General Dan Caine, chairman of the Joint Chiefs of Staff, said 'Operation Midnight Hammer' involved decoys and deception, and met with no Iranian resistance. General Caine indicated that the goal of the operation — destroying nuclear sites in Fordo, Natanz and Isfahan — had been achieved. 'Final battle damage will take some time, but initial battle damage assessments indicate that all three sites sustained extremely severe damage and destruction,' he said. While US officials urged caution and stressed that only nuclear sites were targeted by Washington, Iran criticised the actions as a violation of its sovereignty and international law. Iran's foreign minister Abbas Araghchi said Washington was 'fully responsible' for whatever actions Tehran may take in response. 'They crossed a very big red line by attacking nuclear facilities,' he said at a news conference in Turkey. 'I don't know how much room is left for diplomacy.' China and Russia, where Araghchi was heading for talks with President Vladimir Putin, condemned the US military action. The attacks were 'a gross violation of international law,' said Russia's Foreign Ministry, which also advocated 'returning the situation to a political and diplomatic course.' A Turkish Foreign Ministry statement warned about the risk of the conflict spreading to 'a global level'. British Prime Minister Keir Starmer said the United Kingdom was moving military equipment into the area to protect its interests, people and allies. His office said he talked on Sunday with Mr Trump about the need for Tehran to resume negotiations, but Mr Trump would have posted his remarks about regime change after their conversation. The leaders of Italy, Canada, Germany and France agreed on the need for 'a rapid resumption of negotiations.' France's Emmanuel Macron held talks with the Saudi Crown Prince and the Sultan of Oman.
Telegraph
35 minutes ago
- Telegraph
Iranians ‘moved enriched uranium before US strikes'
Iran claims to have smuggled almost all of the country's highly enriched uranium to a secret location before the United States launched strikes on its nuclear bases. Donald Trump dispatched seven B-2 stealth bombers from American soil to drop massive bunker-busting bombs on three enrichment facilities, Fordow, Natanz and Isfahan, on Saturday night, in an effort to pummel Tehran's nuclear programme. Following the strikes, Mr Trump on Sunday said the US took the bomb 'right out of Iran's hands'. In a post on Truth Social, he wrote: 'We had a spectacular military success yesterday, taking the 'bomb' right out of their hands.' His defence secretary, Pete Hegseth, said Iran's nuclear ambitions had been 'obliterated'. But officials believe that most of the material at Fordow, 400kg of 60 percent enriched uranium, had been moved elsewhere before the attack codenamed Operation Midnight Hammer. Satellite images of convoys leaving all three sites in recent days appeared to support Iran's claims that it moved its 400kg stockpile – much of it previously held at Isfahan. One image, released by Maxar Technologies, a US defence contractor, appeared to show a line of 16 trucks snaking down a road near to the entrance of the Fordow plant on June 19, which is concealed with earth and rubble. Trucks, bulldozers and security convoys appeared to swarm Fordow, with analysts suggesting the image revealed a 'frantic effort' to move centrifuges or shielding materials, according to TS2 Space, a Polish defence firm. Other images showed that Natanz, Iran's largest enrichment site, had already been damaged by extensive Israeli strikes. This means Iran could still possess the material needed to develop a nuclear weapon, although this would be several years away and dependent on Tehran's ability to rebuild vital equipment. Ronen Solomon, an Israeli intelligence analyst, told The Telegraph that even if Iran had moved its uranium, it would be 'like having fuel without a car', adding: 'They have the uranium, but they can't do a lot with it, unless they have built something we don't know about on a small scale.' Ali Shamkhani, an adviser to the supreme leader, said: 'Even assuming the complete destruction of the sites, the game is not over, because enriched materials, indigenous knowledge, and political will remain intact.' Uranium enrichment is the process of increasing the concentration of the uranium-235 isotope in natural uranium. To build a nuclear weapon, uranium must be enriched to about 90 per cent U-235. Once enriched to that level, the material is considered 'weapons grade'. Iran enriches uranium using centrifuges, which spin uranium hexafluoride gas at high speeds to separate the uranium isotopes, increasing the concentration of U-235. This process, called centrifuge enrichment, is done in stages called cascades. Iran has been progressively installing more advanced centrifuges, like the IR-2m and IR-6 models, which are faster and more efficient than the older IR-1 centrifuges. The more advanced the centrifuge, the faster and more efficiently it can separate uranium-235 from uranium-238 and in turn, speed up the time needed to make a nuclear bomb. Iran's current centrifuge capacity could allow it to produce enough weapons-grade uranium for a bomb in less than two weeks, according to the Arms Control Association. It is transported inside steel cylinders, specially designed to withstand significant pressure and temperature changes, according to the World Nuclear Association. The cylinders are then placed inside an extra level of protective casing, called an overpack, and can be transported via rail, road and sea. Iran produces most of its near weapons-grade material at Fordow, its most heavily fortified nuclear facility, buried deep within a mountain, and considered a high-value target for America. The base, reportedly shielded by half a mile of rock, could only be penetrated by the GBU-57 Massive Ordnance Penetrators or MOP, weapons experts said prior to the attack. The bunker-busting MOPs are the largest and most powerful conventional bombs in the US arsenal. As of May 17, Iran has amassed 408.6kg (900.8 pounds) of uranium enriched up to 60 per cent, a report by the International Atomic Energy Agency (IAEA) found. It was an increase of 133.8kg (294.9 pounds), or almost 50 per cent, since the IAEA's last report in February. JD Vance, the US vice-president, appeared to confirm the suggestion that the material had been moved at the 11th hour. 'We're going to work in the coming weeks to ensure that we do something with that fuel,' he told ABC News. On Saturday, stealth pilots pummelled Iran's nuclear programme with 14 GBU-57 bombs, each weighing 30,000lbs, while a US submarine launched a further two dozen Tomahawk missiles. In a televised address to the US a few hours later, Mr Trump said the strikes had 'completely and totally obliterated' three of Iran's nuclear sites – and warned of worse to come. 'This cannot continue. There will be either peace or there will be tragedy for Iran far greater than we have witnessed over the last eight days,' he added. The full extent of the damage inside Fordow remains unclear. At a news conference on Sunday, Gen Dan Caine, the chairman of the Joint Chiefs of Staff, said: 'Final battle damage will take some time, but initial battle damage assessments indicate that all three sites sustained extremely severe damage and destruction.' Yet Two Israeli officials told the New York Times that their initial analysis suggested the fortified site at Fordow had sustained serious damage but had not been completely destroyed. They also said Iran appeared to have moved equipment and uranium away from the site. IAEA Director General Rafael Grossi told CNN that it was not yet possible to assess the damage done underground. A senior Iranian source told Reuters that most of the highly enriched uranium at Fordow had been moved elsewhere before the attack. Reuters could not immediately corroborate the claim.
North Wales Chronicle
an hour ago
- North Wales Chronicle
Trump says he is open to regime change in Iran
'It's not politically correct to use the term, 'Regime Change,' but if the current Iranian Regime is unable to MAKE IRAN GREAT AGAIN, why wouldn't there be a Regime change???' Mr Trump posted on social media. 'MIGA!!!' The posting on Truth Social marked something of a reversal from defence secretary Pete Hegseth's Sunday morning news conference that detailed the aerial bombing on three of the country's nuclear sites. 'This mission was not and has not been about regime change,' Mr Hegseth said. "The damage to the Nuclear sites in Iran is said to be 'monumental.' The hits were hard and accurate. Great skill was shown by our military. Thank you!" –President Donald J. Trump — The White House (@WhiteHouse) June 22, 2025 Secretary of state Marco Rubio warned on Fox News that any retaliation against the US or a rush toward building a nuclear weapon would 'put the regime at risk'. Mr Trump's warning to Iran's leadership comes as the US has demanded that Iran not respond to the bombardment of the heart of a nuclear programme it spent decades developing. The Trump administration has made a series of intimidating statements even as it has simultaneously called to restart negotiations, making it hard to get a complete read on whether the president is simply taunting an adversary or using inflammatory words that could further widen the war between Israel and Iran that began earlier this month. Up until the president's post on Sunday afternoon, the coordinated messaging by Mr Trump's vice president, Pentagon chief, top military adviser and secretary of state suggested a confidence that any fallout would be manageable and that Iran's lack of military capabilities would ultimately force it back to the bargaining table. Mr Hegseth had said that America 'does not seek war' with Iran, while Vice President JD Vance said the strikes have given Tehran the possibility of returning to negotiate with Washington. But the unfolding situation is not entirely under Washington's control, as Tehran has a series of levers to respond to the aerial bombings, which could intensify the conflict in the Middle East with possible global repercussions. Iran can block oil being shipped through the Strait of Hormuz, attack US bases in the region, engage in cyber attacks or double down on a nuclear programme might seem like more of a necessity after the US strike. Mr Trump, who had addressed the nation from the White House on Saturday night, returned to social media on Sunday to lambast Republican Congress member Thomas Massie, who had objected to the president taking military action without specific congressional approval. 'We had a spectacular military success yesterday, taking the 'bomb' right out of their hands (and they would use it if they could!)' Mr Trump said as part of the post on Truth Social. At their joint Pentagon briefing, Mr Hegseth and Air Force General Dan Caine, chairman of the Joint Chiefs of Staff, said 'Operation Midnight Hammer' involved decoys and deception, and met with no Iranian resistance. General Caine indicated that the goal of the operation — destroying nuclear sites in Fordo, Natanz and Isfahan — had been achieved. 'Final battle damage will take some time, but initial battle damage assessments indicate that all three sites sustained extremely severe damage and destruction,' he said. While US officials urged caution and stressed that only nuclear sites were targeted by Washington, Iran criticised the actions as a violation of its sovereignty and international law. Iran's foreign minister Abbas Araghchi said Washington was 'fully responsible' for whatever actions Tehran may take in response. 'They crossed a very big red line by attacking nuclear facilities,' he said at a news conference in Turkey. 'I don't know how much room is left for diplomacy.' China and Russia, where Araghchi was heading for talks with President Vladimir Putin, condemned the US military action. The attacks were 'a gross violation of international law,' said Russia's Foreign Ministry, which also advocated 'returning the situation to a political and diplomatic course.' A Turkish Foreign Ministry statement warned about the risk of the conflict spreading to 'a global level'. British Prime Minister Keir Starmer said the United Kingdom was moving military equipment into the area to protect its interests, people and allies. His office said he talked on Sunday with Mr Trump about the need for Tehran to resume negotiations, but Mr Trump would have posted his remarks about regime change after their conversation. The leaders of Italy, Canada, Germany and France agreed on the need for 'a rapid resumption of negotiations.' France's Emmanuel Macron held talks with the Saudi Crown Prince and the Sultan of Oman.
