Washington, in response to Iran's activities in the Strait of Hormuz, has reimposed a naval blockade on the country's southern ports. This move has completely halted Iran's oil exports and pushed global oil prices to $90 per barrel.
The US Central Command (CENTCOM) redirected ships in the strait to enforce the blockade and launched an attack to neutralize the Curaçao-flagged supertanker Belma, which was allegedly carrying Iranian crude oil. Iran's accusation of attacking ships in the strait led Washington to bomb Iranian coastal areas.
Oil exports zeroed out
Iranian Parliament Speaker Mohammad Bagher Ghalibaf said in a televised interview in late June that during the previous blockade, "we could not export a single barrel of oil." Energy analyst Hamidreza Shokouhi stated that the new siege would remove at least 1.5 million barrels per day of Iranian oil exports from the market.
"This means further pressure on global strategic reserves that have already been used during the war," Shokouhi said. The analyst noted that Washington's insistence during the agreement period that ships use the southern route of the Strait of Hormuz near the Omani coast contributed to the current military escalation.
Iranian economy takes a heavy blow
The blockade has deepened inflation and the currency crisis in Iran's economy. The Iranian rial fell to an all-time low, trading above 1.93 million on the Tehran free market. The Tehran Stock Exchange's main index lost another 120,000 points (2.4%) on Saturday, falling to 4.77 million.
Although there is no widespread shortage of basic foodstuffs, prices of products such as eggs, chicken, and cooking oil have tripled compared to a year ago. Borzou, who trades industrial engines and equipment at the Grand Bazaar in Tehran, said, "Our sales are very erratic. The market is struggling to find a price, there is a lot of instability and uncertainty about the future."
Mutual attacks escalate
Mutual attacks between the US and Iran have rapidly escalated over seven nights. In addition to Iran, Kuwait and Bahrain were also targeted by Iranian missiles and drones. The US military heavily struck provinces across Iran, especially the southern regions near the strait.
Civilian infrastructure such as bridges, tunnels, ports, power plants, and water facilities, as well as military installations, were systematically targeted. Some experts suggested that these attacks could be preparation for a ground invasion of Iran's coastal areas.
US forces struck the Ak Tekeh railway bridge in Iran's northern Golestan province last week after the renewed flare-up of clashes. Ak Tekeh is located on the line connecting Iran to Turkmenistan, Russia, and China and is critical for transporting goods such as food and iron ore.
Energy analyst Shokouhi said, "Let's not forget that the US and Israel initiated infrastructure attacks by striking the South Pars gas fields, oil depots in Tehran, and petrochemical facilities in Mahshahr." The analyst noted that with the help of the Houthis in Yemen, Iran could significantly disrupt maritime traffic in the Bab el-Mandeb Strait.
