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Tehran, Iran The United States has done so it also strengthened its naval blockade of southern Iranian portsin the military struggle is intensifying between them.
The US embargo on Iran was first implemented in mid-April and has been in place for over 9 weeks. It was only implemented after the two sides signed a Memorandum of Understanding (MoU) in June to ending four months of fighting and reopening the Strait of Hormuz.
Iran immediately began exporting tens of millions of barrels of crude oil, most of which is stored in large fixed tanks near its oil ports. However, the recent resumption of military operations in the control of the Strait of Hormuz, Washington removed the oil and banks provided as part of the agreement and prevented ships connected to Iran from returning to the port to carry more Iranian oil.
Since the agreement was disrupted by the recent strikes, the US Central Command (CENTCOM) has directed several ships operating in the Strait of Hormuz. He also went on strike to stop it Belma, which has the flag of Curacaowhich was said to be carrying Iranian goods during the war.
Iran has also been accused of attacking ships in the waterway, prompting the US to bomb Iranian coastal areas.
Iranian officials have acknowledged that the recent blockade has significantly reduced Iran’s exports. Iran’s parliament speaker and chief negotiator, Mohammad Bagher Ghalibaf, speaking on TV at the end of June said. “We didn’t send a single barrel” during the lockdown.
Energy expert Hamidreza Shokouhi told Al Jazeera that the new US blockade means that at least 1.5 million barrels per day of Iranian oil exports will be taken off the market. This has helped push oil prices up to $90 a barrel and the ongoing conflict could lead to further increases.
“This means more pressure on international reserves, which were already used during the war and are facing unprecedented challenges,” he said.
Washington’s insistence on using ships The southern channel of the Strait of Hormuz near the coast of Oman for the duration of the MoU has helped to increase the number of troops, said the expert.
Shokouhi also said that Iran responded to the blockade by trying to ensure that no other country in the region could send their oil through the canal, adding leverage to the US and its allies.
“When the US acts in this way, Iran also acts in a way that does not prioritize the economy and uses the power it has,” Shokouhi said.
A bigger argument
Seven nights of tit-for-tat fighting between the US and Iran quickly escalated and escalated as the week progressed.
The attacks left havoc in Iran and countries across the region, with Kuwait and Bahrain increasingly targeted by Iranian missiles and drones in recent days.
The US military has also focused on areas in Iran, especially the southern areas near the strait.
Civilian infrastructure – including bridges and tunnels, ports and harbors, power stations and waterworks – has been systematically affected, along with military sites. Some say that they can be preparing a ground invasion of Iran’s coastal regions.
The Aq Tekeh railway bridge in northern Iran’s Golestan was among the first targets to be hit by US forces last week after the fighting resumed.
Iranian officials said the damage to the bridge was quickly repaired, but the strike showed the US’s willingness to attack export channels to increase the number of naval blockades.
Aq Tekeh is located on the Gorgan-Incheh Borun line, which connects Iran to the east, including Turkmenistan, Russia and China. It is where food and other essential goods are imported from Central Asia and where Iranian goods are exported, such as steel and polyethylene.
Rising inflation
The previous US naval blockade also had a significant impact on goods and markets in Iran, making daily life for more than 90 million people difficult.
Although there was no significant shortage of essential nutrients, Iran’s inflation rate – which used to be one of the highest in the world – has happened. The prices of other foods such as eggs, chicken and cooking oil, have tripled compared to a year ago.
Inflation has also damaged other sectors of Iran’s economy and industry.
“Our products are very inconsistent. The market is struggling to find prices, there is a lot of volatility and uncertainty about the future,” said Borzou, a trader of industrial engines and equipment in Tehran’s Grand Bazaar.
“It seems that most of the suppliers here are still using the products that have already been shipped, we don’t know what to expect in a few months as most of these products came through China and the UAE and not all of them can be shipped through internal channels,” he told Al Jazeera.
Rial is very cheap
There has also been more pressure on the Iranian Rial due to the renewed military escalation and the resumption of the naval blockade.
The rial changed hands more than 1.93 million times against the US dollar in Tehran’s open market on Saturday, the first day of the Iranian week, registering a new low.
The Tehran Stock Exchange continued last week’s slide, with its main index losing another 120,000 or 2.4 percent on Saturday to end at 4.77 million.
Iran’s military has warned that it will retaliate against any US strikes on Iranian weapons against similar targets in countries with US military forces.
“Let’s not forget that the US and Israel launched an attack against infrastructure, when they hit the gas plant in South Pars, the oil depot in Tehran and the oil field in Mahshahr,” said energy analyst Shokouhi.
By using the support from the Houthi group in Yemen, Tehran could also start a major disruption of the supply to Yemen. the most important strait of Bab al-Mandab near the coast of Yemen – if the US President, Donald Trump, realizes his threat to affect civilians in Iran such as electricity and bridges.
“Trump’s actions in recent months, especially in recent days, have only made the situation more difficult and the way people see it. The current situation may not continue for a long time, but it is increasing the number of conflicts related to this,” said Shokouhi.
