US naval blockade will keep pushing up oil prices: Iran
washington/london, May 2 -- US President Donald Trump vowed to maintain a naval blockade on Iran and was briefed by commanders on further military options, according to a report, underscoring the fragility of the ceasefire between the warring countries.
Trump reiterated that the blockade of Iranian ports is depriving the Islamic Republic of much-needed oil revenue, claiming the pressure would force Tehran back to the negotiating table.
"Good luck blockading a country with those borders," Iran's speaker of parliament, Mohammad Bagher Ghalibaf, said on X, referring to his country's large size. He and other Iranian officials say the blockade, which they insist must be lifted for the sides to go to new talks and for the Strait of Hormuz to be reopened, will further push up oil prices.
The comments from each of the leaders signal how they're waiting for the other to yield first.
Trump was briefed at the White House on Thursday by the head of US Central Command, which oversees American forces in the Middle East, and Dan Caine, the chairman of the Joint Chiefs of Staff, according to Axios, which cited two unnamed US officials. Axios reported earlier that Centcom had prepared a plan for a brief wave of strikes to break the negotiating deadlock.
The US is pitching allies on a joint naval force to secure the Strait of Hormuz. New Zealand said it had received the proposal but would only support a US-led coalition if a sustainable ceasefire was in place.
The effort, called the "Maritime Freedom Construct," was spelled out in a State Department cable to US embassies on Tuesday that called on diplomats to press foreign governments into signing up, the Wall Street Journal reported.
Brent crude futures for July were up 89 cents, or 0.8%, at $111.29 a barrel by 0808 GMT. West Texas Intermediate futures rose 37 cents, or 0.4%, to $105.44. The Brent benchmark was poised for a 5.7% gain over the week while WTI was on track to finish the week up 11.7%. Brent's June contract hit $126.41 a barrel before its expiry on Thursday, marking the highest level since March 2022.
Oil prices have been on the rise since the US and Israel attacked Iran at the end of February, resulting in the closure of the Strait of Hormuz and disruption of shipments of about a fifth of the world's oil and liquefied natural gas supply....
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