Iran says oil blockade will continue until attacks end, Trump threatens to escalate strikes - Reuters

<a href="https://news.google.com/rss/articles/CBMiyAFBVV95cUxNeE03RDlQd01JMVpEZjlxODJDNW1EbHBPSnVUMEdqaFFLN0hrYzRGTzdTT3piWVROaVV5NGtOWEhzY1BiRGNITDB1M3hkbzAzejMtUUsyUHpHSi1JbkVOTDBNMG1FSlN5VENNMDBMeVFrSXMyYU1iNENqalFqUTZ3aWVXejF5NEFRQnNOS0dtbjFaa0U3bmJKVGk4VGNYTU1TTU10Um1OOFRvRjgycEVvR1YtWGJyVWRITFFtS3JPM0dsZERmSXB4Mg?oc=5" target="_blank">Iran says oil blockade will continue until attacks end, Trump threatens to escalate strikes</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

The ongoing war with Iran, sparked by a U.S.-Israel missile strike that killed Iranian leader Ayatollah Ali Khamenei, has significantly disrupted global economic stability. In retaliation, Iran shut down the Strait of Hormuz, a critical channel through which 20 million barrels of oil daily—around one-fifth of global supply—are transported. This has caused a spike in oil prices, peaking near $120 per barrel, and raised gasoline and fertilizer costs globally. The disruption threatens food security, especially in poor countries, and pressures fragile states like Pakistan, which is heavily reliant on energy imports.

Global stock markets rebounded on Tuesday following a steep drop the day before, buoyed by investor optimism that the ongoing war with Iran may be brief. Oil prices also retreated sharply from nearly $120 per barrel to about $90, calming market nerves. U.S. President Donald Trump suggested in a CBS interview that the conflict was largely "complete," though he warned of escalated action if Iran threatens global oil supply.

Oil prices have surged past $100 per barrel due to intensified conflict involving Iran, which has significantly disrupted oil flows through the vital Strait of Hormuz. This marks the first time crude oil has reached this level since Russia’s 2022 invasion of Ukraine. The conflict erupted following U.S.-Israeli strikes on Iran, prompting Iranian retaliatory attacks and the near-total closure of the Strait, through which one-fifth of global oil passes. President Donald Trump downplayed the crisis, calling the spike a "temporary blip" necessary for global peace and security.

President Donald Trump has warned Iran of severe retaliation if it disrupts global oil supplies, stating, "And if Iran does anything to do that, they'll get hit at a much, much harder level." This warning comes amid rising oil prices due to fears of supply disruptions during the ongoing conflict. Trump's comments signal that Washington is prepared to escalate its response if Tehran moves to block or threaten the movement of crude shipments, particularly through key shipping routes that are critical for global energy trade.

The ongoing war involving Iran has severely disrupted critical global oil and gas infrastructure, threatening energy supplies and driving up prices. Iranian drone strikes and fears of further attacks have led to the closure of the Strait of Hormuz, a vital route for roughly 20% of the world’s oil and liquefied natural gas (LNG). Operations have been suspended or disrupted at key facilities in the region, including Qatar’s Ras Laffan LNG terminal, Saudi Arabia's Ras Tanura refinery and East-West pipeline, the UAE’s Fujairah terminal, Iraq’s oil fields and export terminal at Al Basra, and Bahrain’s Bapco refinery.