President Donald Trump has threatened to attack the oil infrastructure on Iran’s Kharg Island if Tehran continues blocking ships from traversing the Strait of Hormuz.
He also said the US “totally obliterated every military target” on the island, which handles roughly 90% of Iran’s crude exports.
Separately, a senior official had told CNN that Iran is considering allowing a limited number of oil tankers to pass through the Strait of Hormuz, provided that the oil cargo is traded in Chinese yuan.
The potential move comes as the Islamic Republic is working on a new plan to manage the flow of oil tankers through the Strait, the source added.
International oil is almost entirely traded in dollars, apart from sanctioned Russian oil, which is traded in roubles or yuan.
Market anxieties about the strait, which is a significant artery for the world’s energy, have pushed oil prices to their highest point since July 2022, the summer after Russia’s invasion of Ukraine.
The United Nations warned on Friday that restrictions on the flow of ships through the strait will have an “immense impact” on humanitarian efforts as the war continues.
“When ships stop moving through that Strait, the consequences travel fast,” Tom Fletcher, the United Nations’ under-secretary-general for humanitarian affairs, said. “Food, medicine, fertilizer and other supplies become harder to move and more expensive to deliver.”
Source: CNN
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