Iran has now thrown out challenges to the US military with one key threat in mind. And that is, if the US provokes it, conflicts in the Strait of Hormuz will arise, there will be a spike on oil prices to $100 per barrel, a situation in our view, that could roll the global economy into recession. Iran is now suffering from higher prices – inflation is at 40% – and is now seeing its government come under pressure as it is being questioned on its dealing with the US and President Donald Trump.
The top military aid to Iranian Supreme Leader Ayatollah Ali Khamenei, Mr Yahya Rahim Safavi, was quoted as saying, “The first bullet that is fired in the Persian Gulf will push oil prices to above $100. That would be unbearable to America, Europe, and the US allies like Japan and South Korea.” For its part, the US has started to allow oil and gas shipments to its allies in Asia, with South Korea and Japan high in the list of those to support.
The US and the Trump administration have worked to get Iran to the table to talk, to negotiate as the overwhelming fear is Iran bringing nuclear weapons into the discourse. This would mean that Saudi Arabia would want the same weapons and the nightmare would be a nuclear arms race in the Middle East.