The US-Iran war has sharply escalated after the killing of Iranian Security Chief Ali Larijani in an Israeli air strike. In response, Tehran has launched missile attacks and warned of “decisive” retaliation. As tensions grow across the Middle East, fears spread about a wider and more dangerous war.
Despite these heightened tensions, the oil prices remain low. This is mainly due to the absence of major supply disruptions. The Strait of Hormuz shipping operations continue at oia restricted yet constant speed
US-Iran War Escalates After Killing of Ali Larijani
In the latest development within the ongoing US-Iran war, Iranian security leader Ali Larijani has been killed. The conflict has reached a critical point because both sides continue fighting without any indication of a peaceful resolution.
Responding to this attack, Iran pledged “decisive” retaliation following the killing, launching missile attacks at Israel. Iranian army chief Amir Hatami stated, “Iran’s response to the assassination of the secretary of the Supreme National Security Council will be decisive and regrettable.”
Overnight, Iran and its allied groups continued their retaliatory strikes. In Israel, two people were killed in Tel Aviv after suffering severe shrapnel injuries, according to emergency services.
Tehran Signals Stability Despite Key Assassinations
Amid these developments, Iran’s Foreign Minister Abbas Araghchi stated that the country’s forces remain stable despite key leadership losses. He added that the US and Israel still don’t understand the Iranian government’s power. His statement read,
“I do not know why the Americans and the Israelis still have not understood this point: The Islamic Republic of Iran has a strong political structure with established political, economic, and social institutions…The presence or absence of a single individual does not affect this structure.”
Recently, Donald Trump stated that Iran intends to make a deal with the US. However, the Iranian minister’s latest statement and the recent developments indicate no such movement.
Further, the minister stated that while leaders do play important roles, the overall system remains stable. Araghchi also pointed to the killing of Iran’s supreme leader, Ali Khamenei, saying that even after such a major loss, the country’s system continued to operate. He noted, “Of course, individuals are influential, and each person plays their role – some better, some worse, some less – but what matters is that the political system in Iran is a very solid structure.”
Oil Prices Stay Subdued as Supply Lines Hold
Despite the escalating tensions, the oil prices remain low, as there is still no major disruption to global supply. The value dropped by more than 3% today, erasing some sharp gains in oil prices on previous days. As of press time, the oil price is at $92, marking a drop of 3.4%.
This slowdown comes after Iraq and Kurdish authorities agreed to restart oil exports through Turkey’s Ceyhan port, easing some supply concerns. LSEG senior analyst Anh Pham commented on this development, stating,
“The news provided some relief to the market. Any additional volume finding its way back to the market is valuable under the current situation, so prices moved down to reflect that.”
Reports also reveal that Iran is now allowing some commercial ships to pass through the Strait of Hormuz. Recently, nearly eight non-Iranian vessels have been seen moving through the waterway.
Michelle Wiese Bockmann, an analyst at Windward, stated, “Western-affiliated vessels won’t voluntarily come into Iranian waters, but likely Chinese, Indian and others will.”
The US has temporarily relaxed sanctions on Russian oil stranded at sea until April 3. As CoinGape reported, this move has also brought a slight decline in oil prices. However, as the US-Iran war remains escalated and there are no signs of an end, the oil price is expected to see high volatility in the coming days.