Brent crude oil prices are once again edging close to the $120 per barrel mark as disruptions in the Strait of Hormuz continue to hamper transit and supplies. The international benchmark has witnessed a constant surge in recent days amid fears of supply constraints linked to ongoing geopolitical tensions in West Asia.
Prices have risen by more than 50-60 per cent since the start of the Iran war on February 28. The United States has maintained pressure on Iran through a naval blockade outside the Strait of Hormuz near the Gulf of Oman.
In a post on X, US Treasury Secretary Scott Bessent said, “While the surviving IRGC leaders are trapped like drowning rats in a sewage pipe, Iran's creaking oil industry is starting to shut down in production thanks to the US BLOCKADE.”
Pumping will soon collapse GASOLINE SHORTAGES IN IRAN NEXT!” he said. While Iran is facing severe difficulties, neighbouring countries, including the UAE, Bahrain, and Kuwait, are also feeling the impact.
Experts, however, have questioned the effectiveness of the US naval blockade, pointing out that Iran is still managing to supply oil to some countries through alternative transit routes.
On Sunday morning, an Iranian supertanker carrying $220 million worth of oil reportedly evaded the blockade and sailed towards China.
In another post, Bessent wrote that Kharg Island, Iran’s primary oil export terminal, is nearing storage capacity.
This will force the regime to reduce oil production, resulting in an additional loss of approximately $170 million per day and causing permanent damage to Iran’s oil infrastructure.
Analysts have flagged rising gasoline prices, inflation, and the additional strain the Iran war is putting on the US economy as well.
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