Tensions in the Gulf have reached a fever pitch, with Iran vowing on Sunday to hunt down Israeli Prime Minister Benjamin Netanyahu even as U.S. and Israeli strikes threaten to strangle vital oil supplies through the Strait of Hormuz.
This narrow waterway funnels one-fifth of global oil trade, and the International Energy Agency warns that prolonged disruptions could spark worldwide economic turmoil.
State media in Tehran amplified the threat from the Islamic Revolutionary Guard Corps. “IRGC vows to pursue and kill “child-killer” Netanyahu if he is still alive,” Iran’s IRNA news agency announced.
Israel wasted no time in retaliation, confirming strikes that eliminated two top intelligence officials from Iran’s Khatam al-Anbiya Emergency Command. Further attacks late Saturday demolished the country’s primary space research centre and a key missile defence factory—assets Reuters has flagged as cornerstones of Tehran’s military edge.
Iran hit back with a missile barrage on central Israel, though emergency services reported no casualties. The exchanges have already rattled shipping, tripling tanker insurance rates according to the BBC, while oil loading briefly halted at the UAE’s Fujairah port due to debris from a downed drone before resuming.
Markets are in freefall. Brent crude closed above $100 a barrel for the second straight day on Friday, surging over 40% since the conflict ignited, with Goldman Sachs eyeing $120 if blockades take hold. U.S. President Donald Trump ordered the first American bombing run on military sites at Kharg Island, Iran’s export powerhouse handling 90% of its 2.5 million barrels daily. He urged allies to send warships to secure the strait.
Iran’s Foreign Minister Abbas Araghchi pushed back online, saying his country is ready to form a committee with the countries of the region to investigate the targets that were attacked. “Our attacks only target American bases and interests in the region.”
In a Telegram update, he stressed, “We have not targeted any civilian or residential areas in the countries of the region so far,” adding that occupying Kharg Island would be a bigger mistake than attacking it.
The fallout spreads. Formula 1 axed April races in Bahrain and Saudi Arabia, stating while alternatives were considered, no substitutions will be made in April. Qatar and Oman plead for restraint at a Gulf summit, as LNG prices leap 25% and refiners scramble.