Washington: US President Donald Trump has warned that Iran could face “very Draconian sanctions” even as he played down the Strait of Hormuz’s future importance, arguing that increased American energy production and new supply routes had reduced the world’s dependence on the strategic waterway.
“We have things that we could sanction. We have very Draconian sanctions, and we’ll see what happens,” Trump said at the White House when asked about possible new measures against Tehran.
The President said vessels were moving through the Strait of Hormuz, which connects the Persian Gulf with the Arabian Sea and serves as a critical route for global energy shipments.
“Right now, the Strait is open; we’ve got a lot of boats coming through, people aren’t reporting that,” he said. “And that may slow down a little bit at some point, but right now a lot of boats are coming through.”
Trump claimed that a US naval blockade against Iran had prevented ships from reaching the country. He did not provide supporting figures during his remarks.
“The naval blockade has been extremely effective,” he said. “No boats have gotten into Iran, but they are getting in for other places.”
The President said there had been brief pauses in the operation under an agreement, but accused Iran of failing to fulfil what it had promised.
“The deal didn’t terminate — you know, the deal didn’t turn out to be what they said, you know, when they tell us one thing, and they do another,” he said.
Trump presented the coming decisions as a choice between an agreement that would push down oil prices and a continuation of the existing US strategy.
“It’ll either be extremely good, and oil prices are going to drop like a rock, or we’ll continue to do exactly what we’re doing,” he said.
He noted that fears of a severe oil-price surge had not materialised. “You know, they were talking about $350 a barrel, and it’s today $84 or $85. And we are getting a lot of oil out,” Trump said.
The President attributed that outcome in part to increased energy production in the United States and the development of alternative supply infrastructure.
“But the other thing that’s happened is people have found other alternatives, which they never thought about, Texas, Alaska, Louisiana and other places,” he said. “In addition, a lot of pipelines — record numbers of pipelines — are being built.”
Trump then questioned whether the Strait would retain the same strategic weight in global energy markets.
“So, I think the Hormuz Strait is not going to be quite as important as it was in the past,” he said.
His remarks came during a White House event with leaders from the finance, cryptocurrency and technology sectors. Trump had been asked about a statement from the Treasury Secretary that the administration could announce its most consequential sanctions against Iran during the week.
(IANS)
