Iran says US energy companies are exposed and vows to respond if they are attacked by Iran

Iran warned on Monday that it would retaliate if the United States launched any more attacks against its assets. It said that the energy supply chain in the region was "sprawling and accessible" and that U.S. companies operating there were also exposed.

Mohammad Baqer Qalibaf, the speaker of the Iranian Parliament, said that "strike our assets and you will be struck" after U.S.-Iranian strikes on shipping over the weekend which pushed oil to six-weeks highs on Monday.

Mohsen Rezaei, a senior Iranian security official, said on Sunday that Iran will announce plans for a restricted zone in Gulf in the next few days and it will soon approve maps of new shipping routes through Strait of Hormuz.

Since the U.S.-Israeli war began on February 28, Iran has slowed down traffic through the Strait of Hormuz, which is a crucial global oil and natural gas supply route.

Rezaei stated that the new restricted area would start?where a U.S. Naval Blockade of Iran begins and extend to areas in the Gulf. He said that any ship entering the zone would be placed on an Iranian sanctions list.

Rezaei stated that "we will only commit ourselves to the Strait of Hormuz remaining open when (the Americans) cease their sabotage and threats against Iran."

Qalibaf, a group that represents Iran's defiance in the face of any U.S. strike, issued a new warning to do so. This was a response, it appeared, to Pete Hegseth, U.S. Secretary of Defense, who had warned that Iran's fleet oil tankers were "defenceless".

It's easy: The oil and gas chain is vast, accessible and exposed. Qalibaf wrote that American oil and gas firms across these waters, and their facilities, share this exposure. He is Iran's chief negotiator.

"Strike our assets and we will strike you. We've already proven it. "Ask the bases that no longer work," in reference to the Iranian attacks against U.S. bases throughout the conflict.

IRAN AND U.S. ATTACKS EXCHANGE

Donald Trump, the U.S. president, has not yet achieved his goals when he launched Operation Epic Fury in February. These included ending Iran's nuclear program, stopping its ability to attack neighbours and creating conditions for Iranians topple their government.

Tehran's clerical leaders remain in power, and want to emerge stronger from the war. They demand the lifting of the sanctions, and hope to collect fees from shipping companies that use the Strait. It carried a quarter of the world's oil and gas before the war.

After a pause of military action in August, tit for tat strikes resumed after the breakdown of the interim ceasefire agreement that was reached in early June. There has been little progress in getting the peace process on track.

U.S. Central Command reported that U.S. forces had struck three Iranian oil tanks on Saturday. One of them was off Kharg Island - Iran's main oil export hub - following the attacks on U.S. ships by Iran's Islamic Revolutionary Guard Corps.

Tehran has demonstrated that it is still capable of attacking U.S. interest in neighboring countries, and of shutting down oil flows through Strait of Hormuz.

According to shipping data released on Monday, an average of 10 cargo ships crossed the Strait each day over the last 10 days. This is the lowest number since May.

Brent crude futures hit their highest level since July 24th at $97.93 per barrel, before falling back to $96.19.

SANCTIONS AND OIL BLOCKADE SQUEEZE THE ECONOMY

Iran says it will increase efforts to combat the problems caused by U.S. Sanctions that are?crushing its economy.

Three senior Iranian sources said that the U.S. effort to choke Iran's economic growth by blocking its oil exports, and preventing sanctions evasion, is becoming increasingly difficult to resist.

Qalibaf stated at the weekend, that alongside the military, Iran's primary battle is now over production, and the livelihoods of the people. He cited currency fluctuations, unemployment, inflation and market management, as major challenges.

The conflict has affected oil-producing Gulf Arab countries such as the United Arab Emirates. It has been hit by?Iranian rockets and its oil tankers have been attacked in the Strait of Hormuz.

Anwar Gargash, the UAE's presidential adviser, said that the country is building alternate routes for its exports of energy and trade in order to avoid being "held hostage" due to the war.

Fuel prices in the U.S. have also increased as a result of Iran's blockade of Strait of Hormuz. Trump's popularity has been affected by the increase in fuel prices as his Republican Party prepares for elections in November, when control of Congress will be at stake.

(source: Reuters)