Oil prices cross $100 due to sea disturbanceImage Credit source: ai generated
In a major military action, Iran’s Islamic Revolutionary Guard Corps (IRGC) opened fire on two commercial ships in the Strait of Hormuz and captured them. As soon as the news of this heavy firing and hijacking of ships came, there was panic in the global commodity market. As a result, crude oil in the international market has suddenly crossed the important level of $ 100 per barrel.
‘Red Line’ in the sea
According to Reuters report, this is the first horrific incident since the beginning of the war where Iranian forces have directly used heavy weapons to stop merchant ships. The Iranian Army had captured a total of three ships on its radar. Iran’s government news agency ‘Tasnim’ has been quoted as saying that the IRGC has declared any external interference in the security and order of the Gulf region as its ‘red line’.
The ships affected by the attack include the Panama-flagged MSC Francesca, which has been seized by the Iranian military. However, taking a sigh of relief, the Government of Montenegro has clarified that their four crew members present on this ship are completely safe. At the same time, rockets were fired and heavy bullets were fired at a Greek ship ‘Epaminondas’ flying the flag of Liberia. The control room of the ship has been heavily damaged in this attack and at present it is also under the control of Iran. Apart from this, firing was also done on the third ship ‘Euphoria’, but it fortunately managed to escape and enter the United Arab Emirates (UAE) border safely.
Iran hits back at Trump’s ‘economic siege’
It is also very important to understand this entire maritime chaos from a geopolitical perspective. Recently, US President Donald Trump had said in a statement that Iran fears ‘economic siege’ more than military bombing. According to diplomatic analysts, this aggressive step of Iran in the Gulf of Hormuz is a direct and aggressive response to the same strategy of America. Iran has given a clear message to the world that if any attempt is made to harm its economy, it will also bring the world’s energy supply chain to a standstill.
Oil crosses 100 dollars
At present, on one hand, America has adopted the diplomacy of encircling Iran from all sides, while on the other hand, all avenues of peace or dialogue seem to be closed. Experts believe that unless a concrete agreement is reached regarding ceasefire in this entire area, there is a strong possibility that this dangerous ‘hide-and-seek’ and violence will continue on the important sea routes of global trade. What this means for the common man and the market is that until there is peace in the sea, there will be a constant threat of inflationary shocks due to crude oil fire.
