19 Chait, Kathmandu. After US President Donald Trump’s speech from the White House giving a strong statement against Iran, oil prices have increased globally. This speech was related to the ongoing war in Iran.
Trump has warned of strong military action against Iran in the next two to three weeks. “We will hit them very hard,” he said, adding that Iran will return to the “Stone Age”.
According to the BBC, the price of benchmark Brent crude oil was around $100 per barrel before Trump began his speech. After the speech ended, the price of oil increased by about 4 percent and reached $105.38 per barrel.
Trump was expected to make an announcement regarding the Strait of Hormuz. But since there is no update about it, the price of oil has increased, according to BBC.
The Strait of Hormuz is considered very important for the world economy, because about 20 percent of the world’s energy trade takes place through this narrow sea route.
The route has been virtually closed since the US and Israel launched a joint attack on Iran on February 28, as Iran has warned that it may target ships passing through the route in response to US and Israeli airstrikes.
Warning of attacks on energy infrastructure if there is no deal
Trump has warned that Iran’s main power generation centers will be attacked if a solution is not reached through negotiations. “If there is no agreement, we will hit all major power plants at once,” he said.
N denied attacking Iran’s oil infrastructure so far. “We did not attack oil, because that would have ended their possibility of reconstruction,” he clarified.
Claims of ‘serious damage’ to Iran’s military capabilities
Trump has claimed that US actions have almost destroyed Iran’s navy, air force and missile programs. “Iran’s navy is finished, its air force is also inactive and its missile capability is almost finished,” he said.
According to him, these actions have seriously weakened Iran’s nuclear program and its ability to expand its regional influence.
Appreciation of allied Gulf countries
Trump has initially said that a diplomatic solution is his priority. But Iran has accused Iran of continuing to pursue nuclear weapons and rejecting attempts at a deal.
Appreciating the support of allied countries including Israel, Saudi Arabia, Qatar, UAE, Kuwait and Bahrain, he said, ‘We will not let them fail under any circumstances.’
Trump’s comments indicated that the war could soon reach a decisive stage. On the one hand, diplomatic negotiations are continuing, while on the other hand, a strong military option is kept open. It is estimated to have a direct impact on the Strait of Hormuz, global energy supply and oil prices.