Washington: US Secretary of State Marco Rubio warned that Iran’s actions could trigger broader economic instability as the increasing tensions in the Strait of Hormuz and fears of prolonged disruption to one of the world’s busiest energy corridors are increasing pressure on global oil markets.
At the White House news conference , Rubio said Iran’s attempts to control shipping through the Strait of Hormuz threatened fuel supplies, global trade and international shipping lanes relied upon by major economies around the world.
“This is approximately a quarter of the world’s oil trade,” Rubio said, referring to the Strait of Hormuz. “The Iranian regime cannot be allowed to dictate who uses this vital waterway.”
The remarks came as the Trump administration launched “Project Freedom”, a military operation designed to escort commercial vessels through the narrow maritime corridor linking the Persian Gulf to global markets.
Rubio said commercial ships carrying fuel, fertiliser and humanitarian supplies had been stranded for weeks because of Iranian attacks on shipping and the laying of mines in international waters.
“There’s humanitarian aid destined for different countries in the world that’s stranded in the Persian Gulf right now,” Rubio said. “It’s the fertiliser that they need for their food and crops that’s stranded.”
Rubio acknowledged growing concerns over fuel prices inside the United States as global oil markets reacted to the crisis.
“The average price of gas in the country right now is $4.50,” one reporter noted during the briefing.
Rubio said the US economy remained more insulated than many others because of domestic energy production, but admitted Americans were still feeling the impact.
“We’re obviously still vulnerable to some extent to global prices,” Rubio said. “That’s not welcome news to Americans that are paying more at the pump.”
He argued that the situation demonstrated why Washington viewed Iran’s nuclear ambitions as a direct threat to global economic stability.
“If Iran had a nuclear weapon and they decided to close the Straits and make our gas prices like $9 a gallon or $8 a gallon, we wouldn’t be able to do anything about it,” Rubio said.
Rubio repeatedly accused Iran of trying to establish permanent control over an international shipping lane.
“We cannot live in a world where a country can decide now we own the international shipping lane and you have to pay us if you want to use it,” he said.
The secretary of state also warned that allowing Iran’s actions to go unanswered could encourage similar behaviour elsewhere.
“I can identify for you six or seven vital shipping lanes around the world that some countries can decide, guess what? If Iran was able to do it, we’re going to do it too,” Rubio said.
The administration said the US military had already begun escorting vessels through the Strait under a “protective bubble” created by naval and air assets.
Rubio said two US-flagged merchant ships had already crossed safely during the first phase of the operation.
The Trump administration has also intensified sanctions pressure on Tehran, with Rubio claiming the economic measures and maritime blockade were costing Iran heavily.
“The blockade alone is costing Iran as much as $500 million a day in lost revenue,” he said.
Global energy traders and shipping markets have closely watched developments in the Strait of Hormuz, which handles a substantial share of the world’s oil and liquefied natural gas exports. Even limited disruption in the corridor can trigger volatility in crude prices, freight costs and insurance rates.
(IANS)
