Iran on Wednesday warned it was prepared for a prolonged war of attrition that could “destroy” the global economy, after firing on two commercial ships and threatening vessels belonging to the United States and its allies.
The warning came as Tehran tightened its grip on the Strait of Hormuz, a strategic waterway through which about 20 per cent of the world’s crude oil and liquefied natural gas shipments pass.
Despite the rising tensions, United States President Donald Trump said the war could end soon, claiming there were few remaining targets for US forces in Iran.
Oil prices have surged since February 28 when the United States and Israel launched attacks on Iran, killing the country’s supreme leader and pushing the Middle East into a widening conflict.
In an effort to curb rising energy prices, the International Energy Agency announced that its member states would release 400 million barrels of oil from their strategic reserves, the largest such release on record.
As the conflict entered its 12th day, Iran’s Revolutionary Guard warned it would target “economic centres and banks” linked to US and Israeli interests, prompting several international companies to evacuate staff from Dubai.
Ali Fadavi, an adviser to the commander-in-chief of Iran’s Revolutionary Guards, said the United States and Israel must prepare for the possibility of a long-term war of attrition that could severely damage both the American and global economies.
Iran also confirmed it had attacked two commercial vessels in the Strait of Hormuz — the Liberian-flagged container ship Express Rome and the Thai bulk carrier Mayuree Naree — accusing them of entering the strait despite warnings from its naval forces.
Oman’s navy rescued 20 crew members from the vessels, while search efforts continued for three missing sailors. Images released by the Thai navy showed thick black smoke billowing from one of the ships.
Analysts warn that any prolonged closure of the strait, which also handles a significant share of global fertiliser shipments used in food production, could have devastating consequences for the global economy, particularly in Asia and Europe.
French President Emmanuel Macron urged leaders of the G7 to take urgent steps to restore safe navigation through the strait, while the United Nations appealed to all sides to allow humanitarian cargo to move freely.
The conflict has also begun spilling into other parts of the Gulf. Authorities in Dubai said drones fell near the city’s airport on Wednesday, injuring four people.
Several multinational companies, including US financial services firm Citi and British consulting company Deloitte, have reportedly asked employees to evacuate their offices in Dubai.
Drones also struck fuel storage tanks at the port of Salalah in Oman, according to the Oman News Agency, while private maritime security firm Vanguard Tech reported that operations at the port had been suspended following damage to its southern section.
The growing economic fallout has increased pressure on the Trump administration, which critics say launched the military campaign without adequately preparing for its global consequences.
Trump, however, insisted the conflict could be brought to an end quickly. “Any time I want it to end, it will end,” he said in an interview with Axios.
Meanwhile, Israel signalled that its military operations would continue indefinitely. Defence Minister Israel Katz said the campaign would proceed “without any time limit, as long as necessary.”
Israel announced it had launched a new wave of large-scale strikes across Iran and against Hezbollah targets in Lebanon’s capital, Beirut.
An Israeli strike hit an apartment building in central Beirut — the second attack on the heart of the Lebanese capital since the regional conflict began. A live broadcast captured the sound of an explosion followed by a fireball erupting from the building.
An AFP correspondent at the scene reported extensive damage to the seventh and eighth floors of the residential building, with several nearby vehicles also damaged.
Fawzi Asmar, a bakery owner on the street where the strike occurred, said he rushed to pull his wife and daughter to safety moments before another explosion struck the building.
In Iran, authorities have also warned against domestic dissent. Police chief Ahmad-Reza Radan said protesters would be treated as enemies of the state, adding that security forces were fully prepared to defend the country’s revolution.
Despite frequent air strikes by US and Israeli forces, residents in Tehran said they were trying to adapt to the worsening situation.
“We’ve put our faith in God. For now, there’s food in the shops,” a 70-year-old resident identified as Mahvash told journalists.
Another resident said many people were learning to continue with daily life despite the conflict.
The war began with a joint US-Israeli attack that killed Iran’s supreme leader, Ayatollah Ali Khamenei. His son, Mojtaba Khamenei, has since been named as his successor, though he has not appeared in public amid reports that he may have been wounded in the same strike.
Tehran’s ambassador to Cyprus, Alireza Salarian, told The Guardian that Mojtaba Khamenei was injured during the attack that killed his father.
Iran’s health ministry said earlier this month that more than 1,200 people had been killed in the US and Israeli strikes, with more than 10,000 civilians reported injured.
