On Wednesday, Iran's Revolutionary Guard fired at a merchant vessel and issued a stern warning: 'Get ready for oil prices at $200 per barrel.' Trump stated that 'Iran has nothing left to blow up,' predicting a decline in oil prices, while Israel vowed to continue its military actions 'without a time limit.'
According to a report by Reuters, Iran stated that the world should prepare for oil prices reaching $200 per barrel as its military attacked commercial vessels on Wednesday. The International Energy Agency (IEA) recommended a large-scale release of strategic reserves to mitigate one of the worst oil shocks since the 1970s.
Nearly two weeks ago, the war triggered by the joint U.S.-Israeli airstrikes has resulted in approximately 2,000 deaths, most of whom are Iranians and Lebanese. As the conflict spreads to Lebanon, global energy markets and transportation have fallen into chaos.
Despite the Pentagon describing it as the most intense airstrike since the start of the war, Iran still launched attacks on targets in Israel and across the Middle East on Wednesday, indicating that it retains retaliatory capabilities.
On Wednesday, three vessels were reported to have been attacked in Gulf waters. The Iranian Revolutionary Guard stated that its forces fired on non-compliant vessels in the Gulf region.
Israeli Defense Minister Israel Katz said that the military campaign “will continue indefinitely, as long as necessary, until we achieve all our objectives and win this battle,” while Trump hinted that the operation would not last long. In a telephone interview with Axios, he stated that there were “almost no targets” left to strike inside Iran. He added, “Whenever I want to end it, it will end.”
ABC News cited a warning from the FBI that Iranian drones might attack the U.S. West Coast, although Trump said he was not concerned about a potential Iranian attack on the U.S. mainland.
Trump later told reporters that the U.S. military had destroyed 28 Iranian mine-laying vessels and that oil prices would decrease.
The U.S. Department of State also warned that Iran and its allied militias may be planning attacks on U.S.-owned oil and energy infrastructure in Iraq. It cautioned that these militias had previously targeted hotels frequented by Americans across Iraq, including the Kurdistan Region.
U.S. and Israeli officials stated that their goal is to end Iran's ability to project power abroad and dismantle its nuclear program. Earlier this week, oil prices surged to nearly $120 per barrel before retreating to around $90 per barrel. On Wednesday, prices rose nearly 5% amid renewed concerns over supply disruptions, while major Wall Street indices declined.
Previously, the stock market rebounded as investors bet that Trump would quickly find an exit strategy. However, other signs indicated that the fighting continues, with Iranian drone and missile attacks targeting ports and cities in Gulf nations as well as sites within Israel, increasing the urgency of calls from Turkey and Europe to end the hostilities.
An Israeli military official stated that the military still has a significant number of targets to strike in Iran, including sites related to ballistic missiles and nuclear facilities.
"Legitimate targets"
There are currently no indications that vessels can safely pass through the Strait of Hormuz. This route, which runs along the Iranian coast and is now blockaded, accounts for approximately one-fifth of global oil transportation.
Trump stated on Wednesday that vessels "should" pass through the Strait of Hormuz, but sources indicated that Iran has laid around 12 mines in the waterway, complicating the blockade.
The U.S. military has urged Iranians to stay away from ports with naval installations. In response, the Iranian military warned that if these ports are threatened, the region's economic and trade hubs will become "legitimate targets."
As fuel prices soar in some countries and Trump's Republican Party trails significantly in pre-November midterm election polls, oil prices have become an increasingly pressing consideration in the decision-making behind this conflict.
The IEA, composed of major oil-consuming nations, recommended releasing 400 million barrels from global strategic reserves to stabilize prices. This marks the largest intervention of its kind to date and was swiftly supported by Washington.
U.S. Interior Secretary Doug Burgum told CNBC on Wednesday that American oil companies would soon announce production increases in response to "price signals."
However, the pace of strategic reserve releases varies among countries, and the volume released constitutes only a small fraction of the oil supply passing through the Strait of Hormuz.
Iranian officials made it clear on Wednesday that they intend to impose a prolonged economic shock.
Ebrahim Zolfaqari, spokesperson for Iran's military command, stated in remarks directed at Washington: 'Get ready for oil prices to reach $200 per barrel, as the price of oil depends on regional security, which you have already undermined.'
Following a nighttime attack on a bank office in Tehran, Zolfaqari stated that Iran would target banks doing business with the United States or Israel. He also advised people across the Middle East to maintain a distance of 1,000 meters from banks.
At sea, a bulk carrier flying the Thai flag caught fire, forcing the crew to evacuate. Three individuals were reported missing and are believed to be trapped in the engine room.
Two additional vessels, a container ship flying the Japanese flag and a bulk carrier flying the flag of the Marshall Islands, reportedly sustained damage from projectiles, bringing the total number of merchant ships attacked since the outbreak of the war to 14.
Iranian officials reported that Mojtaba Khamenei sustained minor injuries.
In Iran, large crowds took to the streets to attend the funeral of a senior commander killed in an airstrike. They carried the coffin while waving flags and portraits of the late Supreme Leader Ayatollah Ali Khamenei and his son and successor, Mojtaba.
An Iranian official told Reuters that Mojtaba sustained minor injuries in the early stages of the war when an airstrike killed his father, mother, wife, and one of his sons. Since the start of the conflict, he has not made any public appearances or issued direct statements.
In Tehran, residents have gradually grown accustomed to nighttime airstrikes. The attacks have forced hundreds of thousands to flee to rural areas, while the city has also been polluted by 'black rain' caused by petroleum smoke.
Israel says 'no time limit.'
Despite Trump's call for Iranians to rise up, hopes that the U.S. and Israel placed on public protests to overthrow Iran's clerical regime have not materialized.
Ahmadreza Radan, the commander-in-chief of Iran's police, stated on Wednesday that anyone taking to the streets would be regarded as "an enemy rather than a protester. All our security forces have their fingers on the trigger, ready to act."
A senior Israeli official told Reuters that Israeli leaders now privately acknowledge that Iran’s ruling system might survive this war. Two other Israeli officials indicated that there are no signs Washington is close to bringing the campaign to an end.
Nevertheless, Abdullah Mohtadi, the leader of the Komala Party of Iranian Kurdistan (a member of a six-party alliance comprising Iranian Kurdish political groups), told Reuters on Wednesday that these parties are well-organized within Iran, with "tens of thousands of young people ready to take up arms" and prepared to resist Tehran if supported by the United States.
Editor/Stephen
