News

Iran Blames US Blockade for Surge in Oil Prices

US Blockade on Iran Drives Oil Prices Higher, Triggers Sharp Criticism and Global Market Uncertainty

Written By : Akshita Pidiha
Reviewed By : Manisha Sharma

The relationship between the US and Iran is heading towards a point where sustainable diplomatic solutions are falling short. Donald Trump’s move to increase economic pressure on Iran is now affecting oil prices in the international market. Mohammad Bagher Ghalibaf, Iran's Speaker of Parliament, has slammed Washington's policies that have driven up oil prices.

Oil Prices Surge Amid Supply Crunch

The US naval blockade that blocks Iran’s oil exports is causing several problems within the Gulf region. This has raised Brent crude oil prices to $118 per barrel, the highest since 2022.

According to Ghalibaf, the reason for this dramatic surge is the US blockade. He claims that ‘junk advice’ from the US Treasury Secretary, Scott Bessent, who supports imposing a blockade, has resulted in oil prices exceeding over $120.

Blockade Strategy Faces Criticism

The US blockade is devised to strangle Iran’s oil exports and extract concessions from Iran through the ongoing talks. This move intends to:

  • Confine Iran’s oil within its domestic network

  • Reduce production and revenue

  • Build internal pressure

Ghalibaf ridiculed this plan, emphasizing its short-term ineffectiveness. Quoting from the statements made by Trump, he sarcastically remarked, “3 days into the operation, no well exploded. We can even go on for 30 and livestream it right here!”

High-Stakes Gamble for Washington

While Washington sees the blockade as leverage, it carries significant risks:

  • Global Oil Inflation: Reduced supply is driving prices upward

  • Market Instability: Traders are pricing in prolonged geopolitical risk

  • Allied Pressure: Energy-importing nations face rising costs

Trump has reportedly decided to maintain the blockade until a ‘permanent peace deal’ is reached, signaling a long-term standoff rather than a short tactical move.

Who is Ghalibaf and Why it Matters

As a former commander of the Islamic Revolutionary Guard Corps and Mayor of Tehran, Ghalibaf’s importance extends beyond politics. He represents a significant influence on Iran’s national security strategy. His involvement in talks at this juncture lends credibility to his words, which represent Tehran’s tough position.

Key Takeaways 

The initial consequence of US blockades is the tightening of the global oil supply and increased economic uncertainty. The move was intended to compel Iran into negotiation. With prices soaring, the potential for an escalation of tension and the plan failing spectacularly is increasing.

Also Read: Trump’s Ceasefire Call Sends Oil Prices Down 4%

Gold Prices in the UAE Remain Range-Bound, Here’s What’s Really Driving the Market

NVIDIA Unveils Nemotron 3 Nano Omni to Boost Multimodal AI Development

Google Upgrades Gemini with File Generation, Moves Closer to Full Productivity Suite

Abu Dhabi Non-Oil Trade Hits $113B in 2025, up 36% as Exports Surge 63%

Data Center Giant Pauses Middle East Investments Amid Iran War: Report