America’s big announcement, decision to blockade the Strait of Hormuz, threat to global oil supply
Washington/Tehran. America has announced a maritime blockade around the Strait of Hormuz. According to former President Donald Trump, this blockade will come into effect from 7:30 pm today. America says that the purpose of this step is to stop Iran’s oil sales and to take action against the ships which are passing through Hormuz by paying toll tax to Iran.
America’s two main goals in the blockade
Under America’s announced strategy, two major steps will be taken in the sea.
First. Stopping all ships that are crossing the Strait of Hormuz by paying toll tax to Iran.
Second. To completely stop the movement of oil and gas by siege of major ports of Iran.
According to the US Central Command, all ships going to and from Iranian ports will be stopped. The scope of this blockade includes both the Persian Gulf and the Sea of Oman.
All major ports of Iran including Bandar Abbas targeted
Iran’s largest port Bandar Abbas is the main target of this blockade. This port is located at the mouth of the Gulf and handles approximately 37 million tonnes of cargo and more than 1 million containers annually. Oil, steel, fertilizers, grains and heavy equipment are exported from here.
Apart from this, the Iranian ports on which there are preparations for blockade are included.
Bandar Abbas, Jask, Shahid Razai, Bandar‑e‑Lange, Bushehr Port and Kharg Island.
Crisis for Gulf countries too
If the blockade is fully implemented, its impact will not be limited to Iran only. Many oil and gas ships originating from UAE, Saudi Arabia, Qatar, Kuwait, Oman and Iraq will also be affected.
Ports like UAE’s Khalifa Port, Jebel Ali, Mina Rashid, Port Khalid, Saudi Arabia’s Ras Tanura, Dammam and King Fahd Port, Qatar’s Ras Laffan, Kuwait’s Mina Al Ahmadi and Iraq’s Umm Qasr may also come under pressure. Fujairah is the only port from where partial supply is possible by bypassing Hormuz.
Marine traffic almost halted
According to maritime intelligence agency Lloyd’s List, shipping traffic in the Hormuz area has almost stopped after the announcement of the blockade. Many ships have changed their route and some ships have returned. Due to this, the immediate impact on the global energy supply chain is visible.
Oil price crosses $100, panic in markets
Immediately after the announcement of the blockade, crude oil prices jumped by 8 percent and crossed $100 per barrel. By evening the price went up to $104 per barrel. Market experts claim that if the situation worsens, crude oil may go up to $150 per barrel.
Direct impact on stock markets
The impact of geopolitical tension was also visible on global markets.
In India, Sensex closed down by 703 points, while Nifty recorded a fall of 208 points.
Karachi Stock Exchange in Pakistan fell by more than 7,000 points.
There was a sharp decline in Dow Jones, Nasdaq and Asian markets in America.
gold and silver cheap
Amidst the tension, the caution of investors also affected precious metals. Silver became cheaper by about ₹ 3,000 and gold by ₹ 316 per 10 grams.
In 45 days, gold has fallen by about ₹ 9,000 and silver by ₹ 30,000.
Iran counterattacked, called the blockade a failure
Iran has taken a tough stance regarding the American blockade. Iran says that if its ports are threatened then no port in the Gulf region will be safe. The Iranian leadership has claimed that it will maintain control over Hormuz and enemy ships will not be allowed to pass.
Iran warns that if important sea routes like Hormuz or Bab-al-Mandeb are closed, there will be a huge shortage of oil and gas across the world and prices may go out of control.
The world is divided, there is no support
Global differences are clearly visible regarding America’s blockade plan.
Britain has clearly said that it will not participate in any naval blockade.
Russia has warned that this will destabilize international markets.
China has opposed intervention, citing energy agreements with Iran.
Turkey has suggested talks and ceasefire.
At the same time, Israel has supported the American move.
Situation is very sensitive
It is clear from this entire incident that the crisis on the Strait of Hormuz has turned into not just a regional but a global crisis. Pressure has increased on all three fronts: energy market, stock market and diplomacy. The coming hours will decide whether this tension will lead to war or be subsided through diplomacy.
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