The regime in Tehran has plans to completely block the Strait of Hormuz, an important trade route. A blockade would have consequences for the global energy supply. Not only for oil from the Middle East but also for liquefied LNG gas from Qatar.
Oil prices have meanwhile risen, with an increase of nearly 10 percent for Brent crude, reaching the highest level in 13 months. This price rise reflects fears that the situation in Iran could obstruct the transit of oil and gas through the Strait of Hormuz.
Gas Prices
According to analysts, a possible closure of the strait shipping route could lead to a doubling of European gas prices. In recent days, gas prices have already risen by 25 percent, and European markets are becoming increasingly nervous.
Promotion
The Iranian Foreign Minister has previously stated that Iran does not want to close the strait, but the Iranian Revolutionary Guard has given contrary orders. This has caused tankers to avoid the Strait of Hormuz.
Long-Term
Analysts point to the possible consequences of a prolonged rise in energy product prices for European economies. Businesses and households are already facing higher costs, which could lead to new requests for expensive energy subsidies from EU governments.
Shippers are already experiencing difficulties reaching the hope in the strategic passage. The war between Iran and the US, combined with the threat it entails, has thrown markets into confusion and turmoil.
Without UN Mandate
The EU is responding by organizing emergency meetings of ministers and Commissioners. The need to form unity in foreign policy is crucial in this European crisis. At the moment, opinions among EU countries are divided on how to respond.
EU President Von der Leyen says 'that we must now stand on the side of the United States'. Other EU leaders have serious reservations about the political actions to force a change of power. Press commentaries point out that this attack, without a UN mandate, violates international law.