Oil prices surged above $100 a barrel after Iran tightened its control over the Strait of Hormuz, a critical global oil shipping route. The price of Brent crude reached $101.28 per barrel in early Asian trade, following reports that Iran attacked multiple vessels attempting to pass through the strait. This marks the first time prices have exceeded $100 since July.
Iranian state media reported that Tehran's Revolutionary Guards targeted two US vessels, eight oil tankers, and 10 other non-compliant ships in the strait. The British maritime monitor UKMTO confirmed that several merchant vessels in the Northern Arabian Gulf and the Gulf of Oman were subjected to disabling fire due to ongoing military activity in the region.
President Donald Trump asserted that oil prices would decrease once the United States wins the ongoing war with Iran, which began in February. Despite Iran's recent expansion of a no-go zone in the Gulf of Oman and the Arabian Sea, Trump remains optimistic about the war's conclusion, even suggesting renaming the strait 'Trump Strait'.
However, US officials privately warn that the conflict could persist through the remainder of Trump's term. The Revolutionary Guards have also struck a US military base in Jordan in retaliation for the destruction of five Iranian oil tankers by US forces. Jordan's army reportedly shot down 18 missiles fired at the kingdom.
Iran's foreign ministry condemned the attack on its oil tankers, labeling it an overt threat to regional and international peace. Tehran demands that Washington meet several conditions to end the war, including withdrawing Israeli forces from Lebanon, ending the blockade of Yemen, and releasing $24 billion in frozen Iranian assets.
As tensions escalate, the International Atomic Energy Agency (IAEA) board of governors voted to refer Iran to the UN Security Council over its nuclear non-compliance. The resolution, adopted by a 23-3 vote with eight abstentions, aims to increase pressure on Tehran. Iran's representative to the UN nuclear watchdog dismissed the resolution, stating it was passed under US pressure and would yield no results.
The crisis in the Strait of Hormuz has significant implications for global oil markets, with the strait typically carrying around a fifth of the world's oil. For Bangladesh, which relies on imported oil for its energy needs, the surge in prices could lead to increased costs for fuel and other petroleum products, potentially impacting the economy.
