Trump delivered a rare prime-time address to the US at 9 pm (local time).
The Iran war has effectively closed the Strait of Hormuz, choking off commodity supplies such as crude, gas and products like diesel to global markets, driving energy prices up and raising fears of an inflation crisis.
Meanwhile, oil futures declined in recent days, although the international benchmark is still around 40% higher than prior to the war.The prospect for a resolution has injected optimism into wider markets, but International Energy Agency Executive Director Fatih Birol warned that energy rationing may be coming soon to some countries as the oil supply shock deepens this month. Filling stations in France and Australia have already run dry.
The standoff over Hormuz is the most pressing issue for energy markets. On Monday, Trump said the US will blow up Iranian infrastructure including power plants if the strait doesn’t re-open, but on Tuesday, he called on other nations to wrest control of the waterway. The United Arab Emirates is among Gulf nations calling on the United Nations to authorize force to re-open it.
Iran and Oman will decide the future of the strait, Iran’s Foreign Minister Abbas Araghchi said on Wednesday, state-run Press TV reported. Hormuz won’t be opened based on the “absurd displays” of the US president, state-run IRIB added, citing a statement by the Islamic Revolutionary Guard Corps.
With inputs from Bloomberg
