Iran Threatens New Oil Shipping Choke Points as US Renews Naval Blockade
Escalating Tensions in Global Oil Shipping Routes
By Enas Alashray, Tala Ramadan, Kanishka Singh and Samia Nakhoul
Iran’s Response to US Naval Blockade
CAIRO/WASHINGTON/BEIRUT, July 15 (Reuters) - Iran's Islamic Revolutionary Guard Corps has threatened to close "all other export corridors that benefit the U.S. and its allies", Iranian media reported, after Iran shut the Strait of Hormuz and the U.S. reimposed a naval blockade of Iranian ports.
"Regional energy exports are either shared by all, or denied to all," the IRGC said in a statement carried by Iran's IRNA state news agency on Wednesday.
Potential Closure of Bab el-Mandeb
Analysts have said Iran has been signalling it may use its Houthi allies in Yemen to shut the Bab el-Mandeb gateway to the Red Sea, opening a new front against Washington and putting two of the world's most vital energy arteries at risk.
The narrow gateway links the Red Sea to the Gulf of Aden, through which Saudi oil exports and a substantial share of global shipping pass.
Houthi Threats and Regional Impact
A senior Houthi official warned on Monday that the group was prepared to close the Bab el-Mandeb Strait - a move he said could send oil prices soaring to $200 a barrel - if Saudi Arabia continued to attack Yemen, according to a report on Iran's Press TV website.
Houthi forces fired missiles at Saudi Arabia after accusing the kingdom of bombing an airport under their control on Monday, breaking a four-year truce in the conflict between the kingdom and the Iran-aligned group.
The Houthis have already shown they can choke global commerce through the Bab el-Mandeb. After the Gaza war erupted in October 2023, the Iran-backed group launched attacks on commercial shipping in the Red Sea, saying it was targeting vessels linked to Israel in support of Palestinians.
US Military Strikes and Iranian Retaliation
The latest threat to global shipping comes a day after the U.S. military said it began a fresh round of strikes "to continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz."
The United States said Iran had attacked seven commercial ships over the last week, leading to nearly a dozen crew members being killed, missing or injured.
The U.S. military said late on Tuesday that it hit dozens of military targets near the Strait of Hormuz and Iranian coastal areas. The wave of strikes lasted seven hours, the U.S. Central Command said in a statement.
'End of America's Evils' and Ongoing Hostilities
'END OF AMERICA'S EVILS'
The IRGC said on Wednesday that the Strait of Hormuz would remain closed until what it described as "the end of America's evils". Before the war began in February, about a fifth of global oil and gas shipments passed through Hormuz each day.
The Guards said they had targeted what they described as command-and-control, logistics, fuel and military equipment facilities belonging to the U.S. Fifth Fleet in Bahrain, in response to the latest U.S. strikes in the Strait of Hormuz.
They also said they had set fire to and destroyed what they described as a U.S. logistics facility in Kuwait's Mina Abdullah and that their air force had struck what they described as a U.S. base at Azraq in Jordan, targeting aircraft hangars. They said some of the U.S. attacks had been launched from bases on Jordanian territory.
Earlier on Wednesday, Kuwait's state news agency reported that a fire was brought under control at a site targeted in Iranian attacks. It was not immediately clear whether the fire was at the same site referred to in the IRGC statement.
Jordan's air defence intercepted and shot down three ballistic missiles that entered the country's airspace from Iranian territory early on Wednesday.
The hostilities between Iran and the U.S. re-ignited last week, fraying an already fragile truce reached in June after several months of fighting that has killed thousands.
US Political Response and Oil Market Impact
Trump’s Threats and Negotiations
TRUMP THREATENS TO HIT ENERGY TARGETS
U.S. President Donald Trump on Tuesday threatened to hit Iranian power plants and bridges next week unless Tehran resumes negotiations.
"I'll save the energy targets for last, but ultimately we'll hit energy targets," Trump said in an interview with Fox News’ Trey Yingst.
U.S. negotiators had been in touch with their Iranian counterparts to tell them "you better make a deal", Trump added.
Shipping Fees and International Reactions
As tensions escalated, Trump on Monday floated the idea of a 20% fee on shipping through the strait, which drew sharp criticism from the U.N. shipping agency and others. On Tuesday, he scrapped the idea and said, without providing details, that he would instead seek investment deals with Gulf states.
Oil Price Fluctuations
Oil prices rose on Wednesday, after closing up 2% to a one-month high on Tuesday, as the latest attacks deepened a supply disruption in the Strait of Hormuz.
For the second straight session, Brent closed at its highest since June 12 and West Texas Intermediate at its highest since June 15. Both contracts rose further in early Wednesday trading.
(Additional reporting by Reuters bureaus; Writing by Michael Perry; Editing by Raju Gopalakrishnan)
