Despite U.S President Trump's new claim that the Iran war is 'very complete' following a call with Russia's Vladimir Putin, new intelligence from sources claims Iran is using a terrifying new tactic involving landmines, according to a media report. The report added that news is at odds with Trump's claim to CBS News that Iran has 'nothing left' following the attacks from the US, insisting: "I think the war is very complete, pretty much. They have no navy, no communications, they've got no air force. There's nothing left in a military sense." According to CNN and the Guardian, on Tuesday, the US military said it attacked and destroyed 16 Iranian mine-laying vessels near the vital Strait of Hormuz. The waterway is a narrow passage between Iran and Oman. It followed claims that Iran was laying landmines and other explosive devices in the waterway, which is vital for the world's oil supply. CNN quoted intelligence sources as saying Iran has placed 'a few dozen mines' in the region and 'has the capability to sow hundreds more'. Merchant ships are now terrified of passing through the vital shipping lane, with the BBC reporting two foreign tankers were hit with explosions on Thursday (12 March). The Strait of Hormuz is hugely important for the economy and for the oil supply, as around one-fifth of the world’s oil passes through there. Oil prices skyrocketed to $120 a barrel on Monday, according to Neil Quilliam of the Chatham House thinktank (via The Guardian). He feared it could rise to $150 if there were further attacks on Iran's oil supply. And oil prices are far from the only thing to be affected, with potential ripple effects that could engulf the world economy. CNBC reports that around one-third of the global fertilizer trade passes through the Strait of Hormuz Euronews adds that for consumers, this could increase the price of wheat, corn, bread, pasta and potatoes. Animal feed prices could also rise, which will be another blow to the agriculture industry. Menelaos Ydreos, secretary general of the International Gas Union, warned CNBC: "I think we have to look at the disruption in [its] totality rather than simply as a question of gas and oil. It is actually much more severe.” That's partly because the petrochemicals that transit through the Strait of Hormuz are essential for pharmaceuticals and plastics, he says. Craig Geskey, vice president of strategic solutions at transportation management firm Traffix, added that rubber, electronics, batteries and sugar will also be affected. Andrei Quinn-Barabanov, supply chain industry practice Lead at Moody’s, told CNBC: "Risks are particularly acute for the Asian garment industry, which relies on petrochemicals shipped through the Strait to produce synthetic fabrics." Gerskey said major disruption to all of these industries will be felt very soon unless the Strait of Hormuz is reopened. He said: "The initial ocean impact may take 10–14 days to appear, but the real pressure typically hits within 2–5 weeks." |
