Oil slumps following Trump’s big Hormuz claim
Brent crude’s price has plunged below the $90/bbl threshold after US President Donald Trump claimed that all sea mines in the Strait of Hormuz had been removed.
IMAGE: Map of the Persian Gulf. Getty Images
The US Navy has successfully removed and detonated all sea mines from international waters in the Strait of Hormuz, Trump claimed on social media platform Truth Social.
“Iran has been notified that any ship or boat placing new mines will be immediately and systematically destroyed,” Trump wrote.
The news has eased some concerns over the seaborne movement of oil, pushing oil prices lower.
Meanwhile, the United Kingdom Maritime Trade Operations (UKMTO) has reported that commercial vessels are still coming under attack amid tensions in the strait.
An oil tanker was struck by an unknown projectile about 9 nautical miles northeast of Ash Shishah, Oman yesterday, UKMTO reported. The attack damaged the engine room and disabled the vessel, it added.
“Tankers are increasingly transiting the Strait of Hormuz with transponders switched off, complicating visibility,” two analysts from ING Bank said.
“No vessels transited outbound [of the strait] in the 24 hours to 24 August,” market intelligence provider Windward reported.
China dismisses Washington’s ‘economic D-Day’ campaign against Tehran
China has formally dismissed Washington’s latest sanctions package against Tehran – calling it illicit and unilateral – adding that Beijing will not sever commercial ties with Iran.
The US Department of Treasury unveiled the ‘Operation Economic Outcast’ campaign against Iran yesterday, targeting Chinese and Hong Kong-based entities involved in trade with Iran. However, it stopped short of sanctioning any Chinese banks.
The US treasury department warned Tehran’s allies that continuing commercial ties with the country would invite severe financial penalties and total isolation by Washington.
China is among the biggest purchasers of Iranian crude oil.
“China’s cooperation with Iran is conducted within the framework of international law, thus should not be disrupted,” China’s Foreign Ministry spokesperson Lin Jian said in a statement.
Meanwhile, Iran has vowed to retaliate against the sweeping US campaign, with a senior official declaring Tehran “fully prepared” for the sanctions.
“Our defense is no longer so defensive; the enemies should wait for an attack,” Reuters reported quoting Iran’s economic affairs minister Ali Madanizadeh said.
Even as the war continues to trigger a global energy crisis, oil prices drifted lower today, although they remain stubbornly above pre-conflict levels.
By Aparupa Mazumder
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