The vital Strait of Hormuz, a critical artery for global oil shipments, will remain closed according to orders from Iran’s new supreme leader, Ayatollah Mojtaba Khamenei. The move escalates tensions in the Middle East as the conflict enters its 13th day, sending shockwaves through energy markets and prompting a defiant response from U.S. President Donald Trump.
Khamenei, who assumed the leadership following the death of his father, Ayatollah Ali Khamenei, in U.S.-Israeli strikes, issued his first public statement Thursday, read by a newscaster on Iranian state television. The new leader, reportedly injured in the same attack, called for the continued blockage of the Strait of Hormuz and demanded the closure of U.S. Military bases in Gulf countries. This stance underscores a hardline approach as Iran vows to avenge the loss of its leaders and retaliate against perceived aggressors.
“The lever of blocking the Strait of Hormuz must definitely be used,” Khamenei stated, referring to the strategic waterway through which approximately 20% of the world’s oil and liquefied natural gas (LNG) typically transits, according to the CNBC. He added that “a limited amount of” Iran’s revenge for the strikes had begun, but would continue until fully realized.
Iran launched a new wave of attacks targeting energy infrastructure in Gulf states on Thursday, briefly pushing oil prices above $100 a barrel. The International Energy Authority (IEA) warned that the ongoing conflict is creating “the largest supply disruption in the history of the global oil market,” potentially surpassing the crises of the 1970s, CNBC reported. Benchmark oil prices have risen 40-50% since the initial attacks on February 28, threatening global economic growth and fueling inflation.
Escalating Regional Conflict
The attacks on Thursday included strikes on fuel tanks in Bahrain, causing residents to shelter in place, and drone damage to Kuwait’s international airport and downtown Dubai. Saudi Arabia reported intercepting drones targeting its Shaybah oil field and embassy district. Shipping in the Gulf has come to a near standstill, with at least three additional vessels attacked off the coasts of the United Arab Emirates and Iraq.
President Trump, facing mounting domestic pressure, dismissed concerns about rising oil prices, stating via social media that his priority is “stopping an evil Empire, Iran, from having Nuclear Weapons, and destroying the Middle East and, the World.”
Meanwhile, violence continues to spread beyond the Gulf. Israeli strikes in Lebanon have killed over 687 people, with more than 800,000 displaced, according to authorities. In Iran, over three million people have been displaced by the war, according to figures released Thursday by the UN’s refugee agency. Israel’s military reported launching a “wide-scale” wave of strikes within Iran, including a target southeast of Tehran allegedly used for nuclear weapons development. Satellite imagery reportedly shows strikes at the Parchin military facility.
Strait of Hormuz Closure and Global Impact
The closure of the Strait of Hormuz, a narrow waterway just 54 kilometers (34 miles) wide at its narrowest point, poses a significant threat to global energy security. Tehran has vowed to halt all oil exports from the Gulf while attacks continue, though some reports suggest its own exports are still being shipped despite sanctions. U.S. Forces have reportedly struck 28 Iranian mine-laying vessels in an effort to prevent the Strait from becoming impassable.
Oil prices have surged past $100 a barrel despite a coordinated release of strategic crude reserves by leading consumer countries, coordinated by the IEA. Stephen Innes at SPI Asset Management commented that the reserve release is “the equivalent of pointing a garden hose at a refinery blaze,” indicating its limited impact on the escalating crisis.
The conflict is already taking a heavy toll. Iran’s health ministry reported over 1,200 deaths, a figure that has not been independently verified. Israel has confirmed 14 deaths, while attacks in the Gulf have resulted in 24 fatalities, including 11 civilians and seven U.S. Military personnel. The war has already cost the United States more than $11.3 billion, according to a Pentagon briefing reported by the New York Times.
The situation remains highly volatile. As Iran continues to vow retribution and the U.S. And Israel maintain military pressure, the potential for further escalation remains significant. The coming days will be critical in determining whether diplomatic efforts can de-escalate the conflict or if the region is headed for a prolonged and devastating war.
Share your thoughts on this developing story in the comments below.
