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 Iranian Military Warns of $200 Oil Barrel Amid Escalating Gulf Conflict

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Iran said the world should be ready for oil at $200 a barrel as its forces hit merchant ships on Wednesday and the International Energy Agency recommended a massive release of strategic reserves to dampen one of the ​worst oil shocks since the 1970s.

The war unleashed with joint U.S. and Israeli airstrikes nearly two weeks ago has so far killed around 2,000 people, mostly Iranians and Lebanese, as it has spread into Lebanon and thrown global energy ‌markets and transport into chaos.

Despite what the Pentagon has described as the most intense airstrikes since the start of the war, Iran also fired at Israel and targets across the Middle East on Wednesday, demonstrating it can still fight back.

On Wednesday, three vessels were reported to have been hit in Gulf waters as Iran’s Revolutionary Guards said their forces had fired on ships in the Gulf that had disobeyed their orders.

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U.S. President Donald Trump, who has not committed to a timeline for military operations, suggested on Wednesday he was not yet ready to call an end to the war.

At a rally in Kentucky, he said “we won” the war, but the ​United States didn’t want to have to go back every two years.
“We don’t want to leave early, do we?” he said. “We got to finish the job.”

Trump said U.S. forces had knocked out 58 Iranian naval ships and that oil prices would ​come down and told reporters in Washington that Iran was “pretty much at the end of the line.”

“Doesn’t mean we’re going to end it immediately, but … They’ve got no navy, they’ve got no air force, they’ve ⁠got no anti-air traffic anything. They have no systems of control. We’re just riding free range over that country,” he said.

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STRATEGIC STRAIT
Trump said the U.S. would now “look very strongly” at the Strait of Hormuz, adding: “The straits are in great shape. We’ve knocked out all of their ​boats. They have some missiles, but not very many.”

Despite Trump’s words, there has been no sign that ships can safely sail through the strait, a now-blockaded channel along the Iranian coast that serves as a conduit for around a fifth of the world’s oil. An Iranian military ​spokesperson said the strait was “undoubtedly” under Iran’s control.

Trump said ships “should” transit through the strait but sources said Iran had deployed about a dozen mines in the channel, further complicating the blockade.

On Wednesday, the G7 group of nations – the United States, Canada, Japan, Italy, Britain, Germany and France – agreed to examine the option of providing escort for ships so they can navigate freely in the Gulf.

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ABC News said the Federal Bureau of Investigation had warned of Iranian drones potentially striking the U.S. West Coast, although Trump said he was not worried that Iran might launch strikes on U.S. soil.

The State Department also warned that Iran and aligned militias may ​be planning to target U.S.-owned oil and energy infrastructure in Iraq and warned that militias had previously targeted hotels frequented by Americans.

U.S. and Israeli officials have said their aim is to end Iran’s ability to use force beyond its borders and destroy its nuclear programme.Oil ​prices, which shot up earlier in the week to nearly $120 a barrel before settling back to around $90, rose nearly 5% on Wednesday amid renewed fears about supply disruption, while Wall Street’s main share indexes fell.

The war has seen ports and cities in the Gulf states, as well as targets in Israel, hit ‌by Iranian drone ⁠and missile barrages.

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‘LEGITIMATE TARGETS’
The U.S. military told Iranians to stay clear of ports with navy facilities, drawing a warning from Iran’s military that if the ports were threatened, economic and trade centres in the region would be “legitimate targets”.

With prices at the pumps already surging and Trump’s Republican Party trailing badly in the polls ahead of midterm elections in November, oil prices have become an increasingly urgent element in the calculations behind the war.

The International Energy Agency, made up of major oil consuming nations, recommended releasing 400 million barrels from global strategic reserves to stabilise prices, the biggest such intervention in history, which was swiftly endorsed by Washington.

Trump said the IEA decision would “substantially reduce oil prices as we end this threat to America and the world.”
U.S. Energy Secretary Chris Wright said Trump had authorized the release of 172 million barrels from the U.S. ​Strategic Petroleum Reserve from next week.

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The rate at which countries can ​release strategic reserves will vary and the amount released would ⁠account for just a fraction of the supply through the Hormuz Strait.

Iranian officials made clear on Wednesday they intended to impose a prolonged economic shock.

“Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised,” Ebrahim Zolfaqari, spokesperson for Iran’s military command, said in comments addressed to Washington.

After offices of a bank in Tehran were hit overnight, Zolfaqari said Iran ​would respond with attacks on banks that do business with the U.S. or Israel. People across the Middle East should stay 1,000 metres from banks, he added.

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At sea, a Thai-flagged bulk carrier was ​set ablaze, forcing the evacuation of ⁠crew, with three people reported missing and believed trapped in the engine room.

Two other ships, a Japanese-flagged container ship and a Marshall Islands-flagged bulk carrier, were also reported to have sustained damage from projectiles, bringing the number of merchant ships that have been hit since the war began to 14.
IRANIAN OFFICIAL SAYS MOJTABA KHAMENEI LIGHTLY WOUNDED
In Iran, huge crowds took to the streets for funerals for top commanders killed in airstrikes. They carried caskets and brandished flags and portraits of slain Supreme Leader Ayatollah Ali Khamenei and his son and successor, Mojtaba.

An Iranian official told Reuters Mojtaba Khamenei had been lightly ⁠wounded early in ​the war, when airstrikes killed his father, mother, wife and a son. He has not appeared in public or issued any direct message since the war began.
Despite ​Trump’s calls for Iranians to rise up, U.S. and Israeli hopes that Iran’s system of clerical rule would be overthrown by popular protest have not been borne out.

Iran’s police chief, Ahmadreza Radan, said on Wednesday anyone taking to the streets would be treated “as an enemy, not a protester. All our security forces have their fingers on ​the trigger”.

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Iran demands war damages compensation for reopening Strait of Hormuz

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Iran on Saturday gives conditions for the reopening of the Strait of Hormuz, including compensation for war damages, complicating a potential deal to open the waterway essential to the world economy.

Tehran has imposed an effective blockade of the strait since the United States and Israel struck Iran in late February, and wants to charge tolls for passage, attacking ships it accuses of attempting to circumvent its preferred route.

Continued attacks in the strait, which was free to transit before the war, led to the collapse of an April ceasefire. Mediators have since urged both sides to return to the terms of a June memorandum.

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Iranian Foreign Minister Abbas Araghchi said discussions with Oman over transit and management of the strait were “approaching the final stages”, but added the reopening of Hormuz “is subject to other conditions and compensation for the violation” of the June agreement.

Security chief Mohammad Bagher Zolghadr on Saturday laid out a list of demands for reopening the strait, including an end to the “war and aggression against Iran and its allies in Lebanon, Palestine, Yemen, and Iraq”.

He also demanded the lifting of a parallel US naval blockade of Iran, the end of sanctions, the release of frozen assets and compensation for wartime damage, according to remarks reported by Tasnim news agency.

Iran’s Revolutionary Guards, meanwhile, said Hormuz’s reopening had “nothing to do with the negotiations between Iran and Oman”, adding that the “enemy is forced to accept Iran’s conditions for the opening of the strait”.

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The comments came as transit through Hormuz has dropped significantly, with Iran targeting ships it accuses of skirting its preferred route through Iranian waters.

The United Arab Emirates’ foreign ministry on Saturday condemned what it called a “hostile Iranian attack that targeted a tanker belonging to ADNOC (Abu Dhabi National Oil Company) with a missile while it was transiting the Strait of Hormuz, without causing casualties”.

Later on Saturday, the United Kingdom Maritime Trade Operations (UKMTO) said a ship was hit by a projectile off Oman in the Strait of Hormuz, causing a fire that was extinguished but no casualties. It was unclear whether they were referring to the same ship.

On Friday, ADNOC had put out a statement saying that since the start of the war, 15 of its vessels had been attacked in Hormuz, “including three vessels this week alone”.

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Oman’s foreign ministry on Saturday condemned “repeated attacks on vessels transiting the Strait of Hormuz”, without naming Iran.

It also said that “ongoing negotiations regarding navigation arrangements in the Strait of Hormuz are proceeding in a positive and constructive atmosphere”, and urged against any actions that might jeopardise the progress.

The previous Iran-US deal — meant to serve as a jumping-off point for negotiations on a permanent settlement — had said Iran and Oman would hash out future arrangements for the strait in discussion with other Gulf countries and “in line with the applicable international law”.

International law generally forbids tolling in such waterways.

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Security agreement

Turkey’s foreign minister said Saturday he expected Egypt to join a joint defence agreement between Turkey, Saudi Arabia and Pakistan designed to stabilize the region, calling the country a “natural partner on all issues”.

“I believe that at the next stage Egypt will also be among us in the alliance. We already act toward one another as if we were alliance members,” Foreign Minister Hakan Fidan said in an interview.

A drone struck US assets at an Egyptian port on the Mediterranean last month, marking the first drone attack on Egyptian territory since the outbreak of the Iran war.

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Fidan said the agreement does not target a specific country.

“There is no common threat that we have put in writing,” he said, according to the news agency.

Pakistan’s foreign ministry said Friday the pact meant an attack on any member would be regarded as an attack on all, adding it was “intended to strengthen collective deterrence”.

 

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Spain imposes border checks on Italy over migrant dispute

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Spain on Saturday started border checks on travellers arriving from Italy, responding to similar measures Rome imposed following an unprecedented migrant rush into the Spanish north African enclave of Ceuta.

“I don’t see a lot of the word ‘diplomacy’ used in these decisions, not by the Italian government, nor by the Spanish government,” said one 36-year-old Italian tourist, Maria Celeste Grillo, who had just flown into Madrid.

She said she had not seen any added checks as she stepped off the plane, but found their implementation “sad”.

Spain announced Friday it would proceed with the heightened controls, citing “persistent irregular migration pressure” facing Italy — deepening a row between the EU partners and NATO allies.

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Spain’s left-wing government has complained that Italy’s hard-right government on July 31 unfairly imposed one month of border checks on travellers from Spain — suspending the EU’s Schengen Area visa-free travel arrangements — because of the Ceuta influx.

More than 70,000 migrants had crossed from Morocco into the Ceuta enclave on July 30 and 31, though almost all of them subsequently returned to Morocco within 48 hours.

The inflow alarmed European nations, especially right-wing ones urging tougher rules on irregular migrants. However, rules for Ceuta mean migrants cannot travel onward to continental Europe without passing another layer of border checks.

Spain’s interior ministry said the new checks on incoming travellers from Italy would apply until September 7.

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Court Halts Trump’s White House Ballroom Project, President Kicks

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An appeals court on Friday upheld an order halting work on Donald Trump’s proposed White House ballroom, enraging the US leader and setting up another Supreme Court battle over the limits of presidential authority.

The US Court of Appeals for the DC Circuit, which had allowed construction to continue while it considered the case, agreed with a lower court that such a massive White House overhaul required the explicit consent of Congress.

It stayed its own decision for two weeks to give Trump time to ask the Supreme Court to intervene.

The Republican president lashed out after the 2-1 ruling, calling it “horrendous, politically motivated, and unlawful”.

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The two majority judges were appointed by Democratic presidents, while the dissenting judge was nominated by Trump himself.

The President vowed in a lengthy social media post to immediately appeal to the Supreme Court.

“This decision, made after much of the work has been done and paid for, is a National Security Threat at the highest level. It is also a National Disgrace,” Trump said in another post on his Truth Social platform on Friday night.

Trump initially touted the construction of the ballroom as necessary to host galas but has since repeatedly pointed to the concurrent addition of an underground military bunker and other security features.

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Under the district judge’s initial order, work was to be allowed to continue only on a limited set of structures, including those that were underground.

“This holding has nothing at all to do with whether the proposed ballroom is desirable or not as a matter of policy. This ruling does not even necessarily mean that the Defendants may not ultimately construct the ballroom,” the majority wrote on Friday.

“What it does mean is that the Defendants may not do so during the district court’s expeditious litigation without securing Congress’s authorisation, as the Constitution and laws require.”

Trump, who has repeatedly complained that the White House lacks sufficient space for grand galas such as state dinners, unilaterally ordered construction of the massive ballroom.

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Work on the project began last year with the sudden demolition of the White House’s entire historic East Wing.

Since then, photographs have shown significant work on a basement complex, with some concrete walls rising above ground level.

Trump has insisted that the ballroom will be privately financed, but media reports in June showed that significant taxpayer funds were going towards the project, which could cost as much as $600 million.

While the White House initially cited a $200 million price tag for the project, it quickly doubled the estimate to $400 million.

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The ballroom is just one of Trump’s pet projects aimed at leaving his mark on Washington by the time he leaves office in 2029, along with a renovation of the Lincoln Memorial Reflecting Pool and other parks, as well as the construction of a gigantic arch.

Several of the projects have similarly faced legal challenges, but the ballroom project would be the first to reach the Supreme Court.

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