Iran’s new supreme leader says oil routes to remain closed as prices soar
In his first message since taking over as Iran’s supreme leader, Mojtaba Khamenei said the Strait of Hormuz, one of the world’s most important shipping routes, will remain closed. He called it a “tool of pressure.”
Khamenei also warned that all U.S. military bases need to be shut down, or they “will be attacked.”
While this is the first time we’ve heard from Khameneni since he assumed leadership on Sunday, he has not been seen since taking office. CNN reported a source told them Khamenei suffered a fractured foot and other minor injuries during the U.S.’ initial attack, which killed his father, former Supreme Leader Ayatollah Ali Khamenei, on Feb. 28.
Oil prices soar amid attacks
The message comes as oil prices briefly topped $100 a barrel Thursday morning after reports of an attack on two oil tankers in the Persian Gulf near Iraq. Now, the U.S. and its allies are preparing a massive release of emergency oil reserves to calm global markets.
Meanwhile, Iran has warned the world to prepare for oil to spike even higher, saying prices could reach $200 a barrel.
Khamenei’s statement at odds with President Donald Trump’s Wednesday claim that “the straits are in great shape.”
Reserves to be released
Trump has ordered the release of 172 million barrels from the U.S. Strategic Petroleum Reserve. Energy Secretary Christopher Wright said those releases will begin next week and continue for about four months.
The government said that as of last week, the Strategic Petroleum Reserve — stored in massive underground caverns in Texas and Louisiana — held about 415 million barrels of oil. Wright said in a statement that the U.S. will replenish the reserve with 200 million barrels “within the next year.”
The International Energy Agency, a group of 32 countries that are mostly U.S. allies, said it will release 400 million barrels’ worth of oil from its emergency reserves. The IEA said its members have more than 1.2 billion barrels of oil in their reserves.
Trump claims victory (again)
Despite having to release oil reserves amid continued fighting, Trump repeated his claim that the U.S. has already defeated Iran.
“We’ve won. Let me say, we’ve won. You know, you never like to say too early, you won,” he said during an event on Wednesday. “We won. We won. In the first hour, it was over, but we won.”
He added, “Over the past 11 days, our military has virtually destroyed Iran.”
However, he said the U.S. still needs to “finish the job.”
Iran’s president asserts that the war is far from through, and laid out what needs to be done to finish it.
“The only way to end this war—ignited by the Zionist regime & US—is recognizing Iran’s legitimate rights, payment of reparations, and firm int’l guarantees against future aggression,” Masoud Pezeshkian said in a post on X.
The cost of war
The war is also carrying a steep price tag for American taxpayers.
Pentagon officials reportedly told a group of senators in a closed-door briefing on Tuesday that the war in Iran cost at least $11.3 billion in just the first six days.
According to a New York Times report, that estimate did not include many of the costs associated with the war, like the buildup of military hardware and personnel ahead of the first strikes.
According to an earlier Washington Post report, defense officials said the military used $5.6 billion of munitions in the first two days of the war. Meanwhile, the Center for Strategic and International Studies estimated that the first 100 hours of the operation cost $3.7 billion, or $891.4 million per day.
Ella Rae Greene, Editor In Chief
