Three weeks ago, on June 18, President Donald Trump signed the Memorandum of Understanding with Iran. After which, gas prices tumbled below pre-war levels, and the oil market cheered as the Strait of Hormuz reopened somewhat, allowing crude to gradually flow out of the Persian Gulf after it had been stuck there for months.
However, having the strait open partially for three weeks wasn’t enough time to overcome the biggest oil supply shock the world has ever seen. Furthermore, it wasn’t sufficient time to refill the commercial and emergency stockpiles that the US needs to supply itself with fuel. This means the United States would not be able to avoid the looming “economic catastrophe” that Trump feared would earn him comparisons to Depression-era President Herbert Hoover.
No one knows if the latest exchange of fire in the Middle East is a blip or a return to all-out war. But what we do know is that Trump said the United States will “very probably hit” Iran again tonight and threatened to bring back the naval blockade.
Trump also went on to say that the United States has not struck Iran “at the highest level” and warned that future attacks could involve the country’s critical infrastructure, including desalination
“We may put it back, the blockade,” Trump says. “And it will only be a blockade for Iran; anybody else can have whatever they want.” The President went on to say that Iran will “drop some mines if they can,” but the US has minesweepers that can clear them.
During a press conference, Trump confirmed that NATO would send minesweepers.
“And one of the things that came up today is that European nations and NATO will, they’re sending minesweepers. We don’t need them now…but they’ll probably drop some more. They’re evil people. They’re sick people that really they’re mentally disturbed people. And, it should have been done 47 years ago,” Trump said.
So far, the strait remains open to those willing to take the risk of coming and going. However, if it closes it again, the United States economy could take an unwelcome hit.
By Sheena
Sources:
CNN: Trump is playing with economic fire by calling the peace deal with Iran ‘over’
BBC: Trump threatens to reinstate naval blockade of Iran
Fox News: NATO countries to deploy minesweeper ships to Strait of Hormuz, Trump says
Image by Gage Skidmore Courtesy of Flickr – Creative Commons
