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Brent crude oil prices surged above USD 120 per barrel on Thursday after US President Donald Trump said the naval blockade of the Strait of Hormuz will continue until Iran agrees to a deal with the United States.
In an exclusive interview with Axios on Wednesday, Trump said the blockade is being used as a key tool to pressure Iran over its nuclear programme. "The blockade is somewhat more effective than the bombing. They are choking like a stuffed pig. And it is going to be worse for them. They can't have a nuclear weapon," Trump told Axios. According to Axios, Trump rejected Iran's proposal to first reopen the Strait of Hormuz and lift the blockade before holding nuclear talks. Instead, he has insisted that Iran address US concerns before any easing of restrictions. The report added that while Trump currently views the blockade as his primary leverage, he could consider military action if Iran does not agree to negotiations. However, he declined to discuss any specific military plans during the interview. The development comes amid rising tensions in West Asia and concerns over disruption in global oil and gas supplies. The Strait of Hormuz is a key route for energy shipments, and any prolonged blockade is expected to impact global markets. Reacting to the situation, renowned economist Jeffrey Sachs warned that the world economy could face severe consequences due to the ongoing crisis. "The world economy will suffer a terrible crisis," Sachs said while addressing the FICCI Legend Series, highlighting the risks posed by sustained supply disruptions. He said the current situation reflects a fragile balance in global energy markets and cautioned that prices could rise further if supply shortages continue. "The betting is that somehow that shortage will be alleviated... but if it isn't, the price will continue to rise," he added. Sachs noted that the combination of geopolitical tensions and rising oil prices could lead to broader economic instability across countries. The continued surge in crude prices is being closely watched by global markets, as prolonged disruptions in the Strait of Hormuz could further tighten supply and push prices higher in the coming period. (ANI)
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