Fears of global energy crisis rise
BEIRUT, Mar 16:
Fears of a global energy crisis rose on Monday as the war in the Middle East raged on, with more US-Israeli strikes on the Iranian capital and Israel’s bombardment of Lebanon. An Iranian drone strike temporarily shut Dubai’s airport, a crucial global travel hub, underscoring the threats to the world economy.
Follow the Daily Excelsior channel on WhatsApp
Since the United States and Israel attacked Iran more than two weeks ago, Tehran has regularly fired on Israel, American bases in the region, and Gulf Arab countries’ energy infrastructure with drones and missiles.
Iranian strikes on commercial ships in and around the Strait of Hormuz and even just the threat of those attacks have also effectively stopped shipping traffic in the vital waterway, through which a fifth of the world’s oil is transported. That has dramatically increased the price of oil and put pressure on Washington to do something to ease the pain for consumers.
Brent crude, the international standard, remained stubbornly over USD 100 a barrel on Monday. It was at USD 104 in early trading, up nearly 45 per cent since the US and Israel attacked Iran on Feb. 28. It has spiked as high as about USD 120 during the conflict.
US President Donald Trump said he has demanded that about seven countries send warships to keep the Strait of Hormuz open, but his appeals have brought no commitments.
Iranian Foreign Minister Abbas Araghchi called claims that his country may be seeking a negotiated end to the war “delusional,” saying in a social media post early Monday that Iran was seeking neither “truce nor talks.”
As morning broke on Monday, a drone hit a fuel tank near Dubai International Airport, the world’s busiest for international passenger traffic, causing a large fire.
Firefighters contained the blaze, and there were no injuries reported, but the airport suspended all flights before resuming them a few hours later.
Later, a person was killed in the capital of the United Arab Emirates when an Iranian missile hit a vehicle, the Abu Dhabi media office said. Fire also broke out at an oil facility in Fujairah, one of the UAE’s seven emirates, following a drone attack.
Saudi Arabia, meanwhile, said it intercepted a wave of 35 Iranian drones sent to its eastern region, home to major oil installations.
Iran has fired hundreds of missiles and drones toward countries in the region hosting US military assets since the war began. Israel’s military said early Monday that Iran launched missiles toward Israel as well.
The conflict is battering the world economy, driving up energy and fertiliser prices; threatening food shortages in poor countries; destabilising fragile states; and complicating efforts by central banks to drive down prices for consumers. Much of the difficulty stems from the virtual shutdown of the Strait of Hormuz.(AP)
Follow our WhatsApp channel
