21 hours Ago
Tension Mounts After Attack on Site at Iran's Parliament
U.S. Secretary of State Marco Rubio called on Beijing to "imagine dialogue with Tehran" after state-run Iranian media reported that parliament unanimously passed a plan to close the Strait. But they require Iran's Supreme National Security Council to sign off.
Blocking the Strait, Rubio has said, would be "economic suicide" for Iran and also "impose a significant economic blow on the world economy as well, particularly economies that depend closely on Middle Eastern oil." He added that other countries, particularly China, should be pressuring Iran, and referred in particular to China's status as the largest purchaser of Iranian oil.
Oil Prices Spike on Conflict Fears
Oil prices surged after the US military attacked Iranian nuclear sites A number of explosive devices were discovered at oil tankers in the Persian Gulf The attacks raised fear of a disruption in oil shipments. Brent crude rose to $78.89 a barrel, the highest since January. About one-fifth of the world's oil trade flows through the Strait, and it is crucial to international energy markets.
Analysts say the US military is well-placed to repel any Iranian retaliation. Still, worries are growing that an escalation would send oil prices higher , further increasing everything from the cost of getting around to the price of food.
China and Asia's Oil Guzzlers Risk Being Counted Out for Years
China bought more than 1.8 million barrels a day of Iranian oil last month, according to shipping data, making it the most exposed to potential disruption. India, Japan and South Korea, other Asian economies, depend on oil shipments through the Strait.
Iran has "more to lose than gain" in shutting the waterway, according to energy specialist Vandana Hari. She cautioned that it could inflame regional tensions and alienate China, Iran's largest oil customer.
