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A senior advisor to Iran's Islamic Revolutionary Guard Corps (IRGC) has issued a stark warning, vowing to set fire to any ship that attempts to pass through the vital Strait of Hormuz. This aggressive stance signals a significant escalation in regional maritime security concerns.

Strait of Hormuz Under Threat

Ibrahim Jabari, the advisor, explicitly stated, "We will burn any ship that tries to pass through the Strait of Hormuz. We will not allow a single drop of oil to leave this region." This declaration comes amid heightened tensions following recent strikes by the United States and Israel against Iran.

Impact on Global Trade and Oil Prices

The Strait of Hormuz is a critical chokepoint for global energy supplies, with approximately 20-30% of the world's oil and liquefied natural gas (LNG) passing through its narrow waters daily. Major consumers, including the People's Republic of China, rely heavily on this route.

Following the recent military actions and retaliatory strikes, maritime traffic through the strait has seen a significant reduction. Insurers have responded by increasing war risk premiums and re-evaluating insurance policies due to the heightened security threats.

Oil Prices Surge

The escalating situation has already sent shockwaves through global energy markets. On Monday, March 2nd, oil prices experienced a sharp increase. Market participants reacted to news of ongoing military operations between the U.S. and Israel against Iran, as well as Iran's retaliatory attacks.

Futures for Brent crude oil on the London ICE exchange for May delivery saw a substantial rise of 13.04%, reaching $82.37 per barrel. While the increase later moderated to 8.93%, oil was trading at $79.38 per barrel. Experts warn that if the Strait of Hormuz were to be closed, oil prices could potentially surge past $100 per barrel.