ECONOMIC SHOCK
With the conflict in its 12th day, Iran’s Revolutionary Guards (IRGC) warned they would strike “economic centres and banks” linked to US and Israeli interests, prompting more international firms to evacuate staff from Dubai.
The US and Israel “must consider the possibility that they will be engaged in a long-term war of attrition that will destroy the entire American economy and the world economy”, Ali Fadavi, an adviser to the Guards’ commander-in-chief, told state television.
Iran said it targeted two commercial vessels in the Gulf after they entered the Strait of Hormuz, “after ignoring the warnings” of its navy.
The IRGC also insisted Tehran retained full control over the strategic waterway, adding that “armed forces are not neglecting their duties for even a moment”.
Analysts warn that a prolonged disruption to shipping through the strait – which also carries roughly a third of the fertiliser used in global food production – would deliver a severe economic shock, particularly in Asia and Europe.
The UN Security Council passed a resolution demanding Iran halt attacks on Gulf states, prompting the Islamic Republic’s ambassador to the United Nations to accuse it of a “blatant misuse” of its mandate.
The conflict has already disrupted two pillars of the Gulf economy – energy production and commercial aviation.
On Wednesday, drones fell near Dubai airport, injuring four people, authorities said. Others struck fuel tanks at Oman’s Salalah port, according to the Oman News Agency.