US War on Iran Causes Shipping Chaos, Oil Flows Plummet
Iran's Supreme National Security Council Secretary Mohsen Rezaei has mocked the US military, stating that their initial goal of ending the war with Iran within days and seizing control of its oil and gas resources was unrealistic.
The ongoing conflict between the two countries has led to a significant disruption in shipping through the Strait of Hormuz, with only seven commodity ships crossing on August 20 compared to the usual 20 percent of global crude oil and LNG shipments.
Rezaei's comments come as commercial vessels remain stranded or delayed across the Persian Gulf, with at least 70 ships still trapped in the region according to a report by the US Naval Institute earlier this month.
The impact has been severe, with oil flows through Hormuz falling from around 18 million barrels per day to roughly 2 million barrels per day, and shipping costs surging to as much as $550,000 per day for large tankers on high-risk routes.