Iran threatens to block Strait of Hormuz; oil shipping costs surge

New Delhi, Mar 3: An Iranian official has warned that Iran will take severe action against vessels attempting to pass through the strategic Strait of Hormuz, escalating tensions in the Gulf region, BBC reported. Ebrahim Jabbari, adviser to the Commander-in-Chief of the Islamic Revolutionary Guard Corps (IRGC), said on state television that the strait has effectively been closed.

“We will set fire to anyone who tries to pass through,” Jabbari said, warning ships not to enter the region. “They should not come to this region. They will certainly face a serious response from us,” reports the BBC. He accused the United States of being “thirsty for the region’s oil” and said Iran would “strike their pipelines in the region and will not allow oil to be exported from this area.”

The Strait of Hormuz, located between Iran and Oman, is one of the world’s most critical maritime choke points. Nearly one-fifth of global oil and gas supplies pass through the narrow waterway, making any disruption a major concern for international energy markets.

According to data from the London Stock Exchange Group, the cost of hiring a supertanker to transport crude oil from the Middle East to China has surged to a record high of over $400,000 (around £298,300). The rate is nearly double what it was last week, when the United States warned of possible military action against Iran. The record freight charges apply to the largest oil tankers capable of carrying up to two million barrels of crude.

Iran has previously targeted vessels transiting the Strait of Hormuz, heightening fears of further disruptions. The spike in shipping costs is among several signs of market volatility following Israeli and US strikes on Iranian targets over the weekend.