The US and Iran have sent signals that the conflict between the two sides shows no signs of ending soon, in the context of widespread war and strong fluctuations in the global energy market.
The war broke out after joint airstrikes by the US and Israel nearly 2 weeks ago. Fighting has killed about 2,000 people, mostly Iranians and Lebanese, and spread to Lebanon and disrupted the energy market as well as global transportation operations. The United Nations Children's Fund (UNICEF) said more than 1,100 children have been killed or injured.
US President Donald Trump affirmed that Washington needs to "complete the job". Speaking at a rally in Kentucky before the midterm election in November, Mr. Trump said the US has "won" but does not want to return to the war every few years.
Meanwhile, Iran continues to launch attacks targeting Israel and many areas in the Middle East, showing that counter-attack capabilities are still maintained. Iranian explosive boats are believed to have attacked two fuel tankers in Iraqi waters, causing the ship to catch fire and one sailor to die. Three other ships in the Gulf region were also hit.
Tensions have strongly impacted the oil market. Oil prices once increased by nearly 120 USD/barrel and then fell to about 90 USD, then increased by nearly 5% due to concerns about supply disruption. Key Wall Street stock indices also fell.
Some experts believe that the oil tanker attacks may be Iran's direct response after the International Energy Agency (IEA) announced plans to release large amounts of strategic oil reserves to cool down energy prices.
The IEA proposed releasing 400 million barrels of oil from global strategic reserves, considered the largest intervention in history to deal with the energy shock since the 1970s. US Energy Secretary Chris Wright said that President Trump has allowed the release of 172 million barrels of oil from US strategic reserves starting next week.
The Strait of Hormuz, which transports about one-fifth of the world's oil, is currently blocked and there are no signs that ships can move safely. An Iranian military spokesman declared that the area is under Tehran's control, while the G7 group is discussing the possibility of escorting ships to ensure maritime traffic.
Mr. Trump said that US forces destroyed 58 Iranian naval ships and affirmed that Washington will closely monitor the situation in the Strait of Hormuz. Some sources say Iran has deployed about a dozen naval mines in the area, increasing the risk to ships.
In the context of rising fuel prices, oil has become an important factor in the strategic calculation of the war. An Iranian military spokesman warned that oil prices could reach 200 USD/barrel, saying regional security has been destabilized.
