Iran has warned that “not a litre” of oil will be exported from the Middle East until the United States and Israel stop bombing it. The warning comes on the heels of statements made by President Trump that the war would be over “very soon”, which toppled oil prices from peaks reached on Monday.
“We are the ones who will determine the end of the war,” a spokesman for the Islamic Revolutionary Guards Corps said in a statement today, as reported by Reuters.
The threat followed remarks made by President Trump that included threats for the attacks to actually intensify if Iran continued to prevent oil from leaving the Middle East.
“If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far,” the U.S. president said on TruthSocial.
“Additionally, we will take out easily destroyable targets that will make it virtually impossible for Iran to ever be built back, as a Nation, again — Death, Fire, and Fury will reign upon them — But I hope, and pray, that it does not happen!” Trump also wrote on his social network, adding that this was a gift from the U.S. to China and all other oil importers that bought Middle Eastern oil.
The situation appears to be of the stalemate sort right now, which suggests the recent reversal of the oil rally may end, after traders rushed to sell on Monday, following Trump’s remark about the war ending “very soon”. The selloff pushed Brent crude and WTI below $100. However, if the Strait of Hormuz remains effectively closed, prices will likely start climbing again although more slowly, if Trump goes ahead with the sanction-lifting on “some countries”.
By Irina Slav for Oilprice.com
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