A spokesperson for Iran's Islamic Revolutionary Guard Corps (IRGC) stated on Wednesday that any vessel linked to the United States and Israel or their allies "will be considered a legitimate target" and that "not a litre of oil" will be allowed through the Strait of Hormuz. The spokesperson claimed, "You will not be able to artificially lower the price of oil. Expect oil at $200 per barrel. The price of oil depends on regional security, and you are the main source of insecurity in the region."
Global oil prices have fluctuated wildly this week amid continued US-Israeli attacks against Iran, which has retaliated with missile and drone strikes across the wider Middle East. The closure of the Strait of Hormuz, through which about one-fifth of the world's oil supplies transit, and production slowdowns in some Gulf countries have raised concerns of further disruptions. Fears over the duration of the war, which began on February 28 and shows no sign of abating, are also adding to uncertainty, driving oil prices higher.
On Wednesday, maritime security and risk firms reported that three ships were hit by projectiles in the Strait of Hormuz, including a Thai-flagged cargo vessel attacked about 11 nautical miles (18km) north of Oman. World leaders, including members of the Group of Seven (G7) and the European Union, have been mulling what action to take in response to the war's impact on global economies. Christian Bueger, a professor of international relations at the University of Copenhagen and maritime security expert, warned that Europe will face "a major energy supply crisis" if the Strait of Hormuz is not reopened.
The International Energy Agency (IEA) announced on Wednesday that its 32 member countries had unanimously agreed to release 400 million barrels of oil from their emergency reserves in an attempt to lower prices. IEA Executive Director Fatih Birol, in an address from the agency's Paris headquarters, described this as "a major action aiming to alleviate the immediate impacts of the disruption in markets," but stressed that "the most important thing for a return to stable flows of oil and gas is the resumption of transit through the Strait of Hormuz." The reserve supplies will be made available "over a timeframe that is appropriate" for each member state, the IEA said in a statement without providing details.
German Economy and Energy Minister Katherina Reiche said earlier in the day that the country would comply with the release, while Austria also stated it would make part of its emergency oil reserve available and extend its national strategic gas reserve. Meanwhile, Japan's Ministry of Economy, Trade and Industry said it would release about 80 million barrels from its private and national oil reserves. Japanese Prime Minister Sanae Takaichi noted that the country, which gets about 70 percent of its oil imports through the Strait of Hormuz, would begin releasing the reserves on Monday.
Source: www.aljazeera.com