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Iran strikes Gulf oil hub as it rejects Trump's ceasefire claim

Omar Tamo and Leen Al-Rashdan, Bloomberg News on

Published in News & Features

Iran launched fresh attacks across the Persian Gulf, disrupting shipments at a key United Arab Emirates oil hub and denying U.S. President Donald Trump’s assertion that it’s seeking ceasefire talks.

The UAE and Saudi Arabia reported drone and missile attacks overnight into Monday. Dubai temporarily halted flights at its main airport and said some Emirates departures would be canceled because of a fire at a fuel tank that it said was caused by an Iranian drone.

The UAE oil-export terminal of Fujairah was hit again on Monday, after a strike on Saturday that forced the suspension of some shipments for about a day.

Israel carried out more airstrikes on infrastructure in the Islamic Republic’s capital, Tehran, after a barrage of missiles targeting the Jewish state.

The attacks show there’s no letup in the fighting that began with the U.S.-Israeli alliance’s bombing of Iran on Feb. 28. The Strait of Hormuz — a transit point for about a fifth of the world’s oil — remains effectively closed, causing a disruption to global energy supplies that’s double that of the Suez Crisis of 1956, according to Morgan Stanley.

Trump for the first time called on world powers — including France, the U.K., Japan and China — to help the U.S. reopen the waterway by sending warships to provide escorts to commercial vessels. None of the countries have so far said they’re yet willing to do that.

Oil prices rose again. Brent climbed 0.5% as of 2:48 p.m. in Dubai to more than $103 per barrel, a move that will heap more pressure on Trump as U.S. gasoline prices jump. Dubai stocks slid into bear-market territory, having dropped 21% from a February high.

Trump said over the weekend that Iran is ready to make a deal to end the war, but the U.S. wants better terms, including a commitment by Tehran to abandon nuclear activities.

“Iran wants to make a deal, and I don’t want to make it because the terms aren’t good enough yet,” he said.

Yet Iranian Foreign Minister Abbas Araghchi denied seeking talks or a ceasefire with the U.S.

“The reason we say we do not want a ceasefire is not because we are seeking war, but because this time this war must end in such a way that our enemies never again think of repeating these attacks,” Araghchi said at a media briefing on Monday. “I think they have already learned a good lesson and understood what kind of nation they are dealing with.”

 

Japan, which rarely wants to appear out of lockstep with the U.S., said through a senior official that efforts to escort ships through Hormuz face “high hurdles.” Australia ruled out sending warships.

While China hasn’t made any direct response to Trump’s request, the state-run Global Times dismissed the idea as a U.S. attempt to spread the risk “of a war that Washington started and can’t finish.” Trump threatened to delay his summit with Xi Jinping if Beijing doesn’t help secure the strait.

European Union foreign ministers will discuss the idea of expanding the bloc’s Aspides naval mission from the Red Sea to the Strait of Hormuz when they meet Monday, though officials cautioned no decisions are imminent.

The military operation to secure shipping in the Red Sea “has not been effective so far,” German Foreign Minister Johann Wadephul told ARD television on Sunday, adding Berlin was very skeptical about any expansion of the naval mission.

The Pentagon estimates the war — which U.S. officials said cost the country $11.3 billion in the first six days alone — would take four to six weeks, said Kevin Hassett, head of the White House’s National Economic Council. Underscoring the domestic pressure on Trump, Hassett was among several administration officials on Sunday asking Americans for patience as global oil prices rise.

The conflict has left almost 4,000 people dead across the region, according to tolls from governments and nongovernmental organizations. The U.S.-based Human Rights Activists News Agency said more than 3,000 people died in the past two weeks in Iran. Lebanon said 850 people were killed since Israel began attacking the Iran-aligned Hezbollah militia in the country. Dozens have died across the Gulf and in Israel, while the US has lost 13 service members.

The U.S. hit military sites over the weekend on Kharg Island, from which Iran exports almost all its oil. In announcing the strike, Trump said military facilities there had been “obliterated,” adding that he chose not to hit oil infrastructure “for reasons of decency.”

He threatened to do so should Iran “do anything to interfere with the Free and Safe Passage of Ships through the Strait of Hormuz.”

Trump said that even though Iran’s military was “already destroyed 100%,” it was “easy” for Tehran to continue threatening ships with drones, mines and short-range missiles. The U.S., he said, “will be bombing the hell out of” Iran’s shoreline to try to counter that.

There have been 16 reported attacks on vessels in and around Hormuz since the war began, according to the U.K. Maritime Trade Operations.


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