BlockBeats news, March 3, Ebrahim Jabari, an advisor to the commander of the Iranian Revolutionary Guard, stated that the Strait of Hormuz has been closed, and Iran will fire on any vessels attempting to pass, and will attack oil pipelines and transmission lines. This is the most explicit warning from Iran since Saturday when it informed ships that it would close this exit channel. This move could obstruct one-fifth of global oil transportation and drive a significant surge in crude oil prices. According to a Fox News reporter, the U.S. Central Command stated that the Strait of Hormuz is not closed, despite the Iranian Revolutionary Guard’s claims. Iran is not patrolling the strait, and there are currently no signs that it is mining the strait.
International crude oil settlement prices rose sharply. As of the close on the 2nd, the price of light crude oil futures for April delivery on the New York Mercantile Exchange increased by $4.21, closing at $71.23 per barrel, a gain of 6.28%. U.S. Secretary of State Rubio stated on Monday that the United States will take measures to alleviate the energy price increases caused by the oil price surge due to the Iran conflict. Rubio indicated that U.S. Treasury Secretary Besant and Energy Secretary Wright will announce relevant plans on Tuesday.
Additionally, U.S. State Department officials stated that the U.S. State Department is urging American citizens to “leave immediately” from over a dozen countries and regions in the Middle East. These locations include Bahrain, Egypt, Iran, Iraq, Israel, the West Bank and Gaza, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, the UAE, and Yemen. According to CNN, a senior U.S. official revealed that the United States is preparing for a “large-scale attack” on Iran within the next 24 hours.
Former U.S. Treasury Secretary Yellen stated that the Iran conflict makes the Federal Reserve more inclined to keep interest rates unchanged. The duration of the Iran conflict’s impact on the oil market will determine how much it will hurt U.S. economic growth and how much inflationary pressure it will bring, which will complicate the Federal Reserve’s work. According to CME “FedWatch,” the probability that the Federal Reserve will keep interest rates unchanged in March is 97.5%, and the market still bets on a policy of inaction in the short term. JPMorgan Chase CEO Dimon said that if the Iran conflict does not prolong, there will be no severe inflation. The current situation will cause a slight increase in natural gas prices. The U.S. dollar index rose sharply by 0.79% on March 2, closing at 98.382 in the foreign exchange market’s late session.
