Iran Issues Stark Warning of Retaliation Against Middle East Economic Centres
Iran has issued a severe warning that continued attacks by the United States and Israel will provoke retaliatory strikes against all economic centres across the Middle East. This threat comes as Tehran signals further disruptions to global energy supplies, escalating tensions in the region.
Escalation of Conflict and Threats from IRGC General
Islamic Revolutionary Guard Corps (IRGC) General Ebrahim Jabbari stated that Tehran would intensify its response if its main centres were targeted. According to Al Jazeera, quoting Iranian news agency ISNA, Jabbari declared, We are saying to the enemy that if it decides to hit our main centres, we will hit all economic centres in the region. He further announced, We have closed the Strait of Hormuz. Currently, the price of oil is above $80 and will soon reach $200.
Impact on Global Oil Markets and Strait of Hormuz
Brent crude oil surged above $85 per barrel for the first time since July 2024, driven by fears of supply disruptions. The Strait of Hormuz is a critical global energy corridor, handling approximately:
- One-fifth of the world's traded oil.
- Significant volumes of liquefied natural gas exports from Qatar, the United Arab Emirates, and other Gulf nations.
- Around 20 million barrels daily, which is about 20% of global oil consumption.
Any prolonged closure of this narrow passage could have severe consequences for global energy markets, shipping routes, and oil-importing economies, as hostilities between Iran, the US, and Israel intensify.
Background of Recent Military Actions
This development follows joint US-Israel operations conducted early Saturday across Iran, including Tehran, which resulted in the death of Iran's Supreme Leader Ali Khamenei. In retaliation, Tehran has launched indiscriminate strikes throughout the region, targeting:
- Israel and US military bases.
- Multiple iconic sites.
- Critical economic hubs such as oil refineries and production facilities.
Satellite imagery has revealed the aftermath of these strikes on Iranian sites, from Khamenei's compound to nuclear complexes. Meanwhile, the US military operation, dubbed Operation Epic Fury, reportedly incurred costs of $700 million within 24 hours, with the final war expenditure remaining uncertain.
The situation remains volatile, with Iran's threats highlighting the potential for broader economic warfare in the Middle East, further destabilizing global energy security.
