Credit, Foto de Brandon Bell/Getty Images
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- Author, Daniel Gallas and Marina Rossi
- Role, From BBC News Brasil in London and São Paulo
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Reading time: 6 min
But, at the end of the day, American President Donald Trump gave statements to CBS News, the BBC’s US partner, suggesting that the war could soon end.
“I think the war is practically over.” He said the US is “way ahead of schedule”, adding that Iran “has no navy, no communications, no air force” and claims its missiles are “reduced to a scattered number”.
Shortly after Trump’s speech, the markets reacted. The Ibovespa, the main index of the Brazilian market, recovered 180 thousand points at the end of the afternoon, closing up 0.86%, while the dollar closed the day with a drop of 1.5% against the real, being quoted at R$ 5.16.
WTI and Brent oil prices, which exceeded US$100 per barrel at the beginning of Monday, moderated throughout the day, stabilizing in the US$90 range.
Later in the day, Trump held a press conference in which he reaffirmed that the war will end “very quickly”, but did not speak of dates, and signaled in the other direction, saying that the US “did not win enough” in Iran.
Faced with the possible impacts of the conflict on oil distribution, ministers from the G7 countries met in Europe on an emergency basis, but did not reach a consensus on a possible joint release of oil reserves to contain rising prices.
Oil reserves are coordinated by the International Energy Agency (IEA), with 32 members of the group holding strategic reserves as part of a collective emergency system designed for oil price crises.
The President of Russia, Vladimir Putin, offered help to alleviate the situation with the supply of oil and gas, including to European countries.
In a televised address before oil and gas industry officials and executives, he warned that oil production, which depended on deliveries through the Strait of Hormuz, could soon come to a complete halt.
In a telephone conversation, Putin and Trump talked about “the current international situation”, mainly involving Iran and Ukraine. According to Yuri Ushakov, Vladimir Putin’s foreign policy advisor, the conversation lasted about an hour and was “professional, frank and constructive”.
Later, in a statement on social media, Trump threatened a “20 times stronger” attack if Iran did anything to disrupt the flow of oil through the Strait of Hormuz.
“Furthermore, we will destroy easily eliminated targets that will make it virtually impossible for Iran to rebuild itself as a nation — death, fire and fury will reign over them — but I hope, and pray, that this does not happen,” the American president said.
The serious interruption in the region’s energy supply threatens to cause price increases for consumers and companies around the world.
About a fifth of the world’s oil supply is typically transported through the Strait of Hormuz. But traffic through this narrow passage has all but stopped since the war began more than a week ago.
Analyst Adnan Mazarei of the Peterson Institute for International Economics said the rise in oil prices was expected given the halt in production in some Gulf countries and signs of a protracted conflict in the region.
“People are realizing this isn’t going to end anytime soon,” he said, adding that goals put forward by the U.S. are “becoming increasingly unrealistic.”
Trump, who campaigned on a promise to reduce the cost of living for Americans, played down concerns about rising oil prices.
On Sunday, he posted on his Truth Social platform: “Short-term oil prices, which will fall rapidly once the destruction of the Iranian nuclear threat ends, are a very small price to pay for the security and peace of the US and the world. ONLY FOOLS WOULD THINK DIFFERENT!”
His Energy Secretary, Chris Wright, told American broadcasters that Israel, not the US, was targeting Iran’s energy infrastructure, amid some concern about rising US gasoline prices caused by the war.
Data from drivers’ association AAA showed that the average price of regular gasoline in the US rose 11% last week, reaching US$3.32 (R$17.28) per gallon.
Credit, Houssam Shbaro/Anadolu via Getty Images
In Lebanon, the death toll rose to 486 this Monday, according to state media. The agency added that 1,313 people were injured, according to the Ministry of Public Health. Furthermore, at least half a million people were displaced in the country.
Several branches of the Al-Qard Al-Hassan financial institution were hit this Monday in different parts of Beirut. In light of the attacks, Lebanese President Joseph Aoun called for a “complete ceasefire with the suspension of all Israeli attacks by land, air and sea against Lebanon.”
Joseph Aoun has requested international support for his country’s armed forces to allow them to take control of Hezbollah-controlled areas and disarm the group, which faces government opposition.
Iran’s new leadership
On Sunday, Iran named Mojtaba Khamenei to succeed his father, Ali Khamenei, as Supreme Leader, signaling that, more than a week after the start of the conflict, the hard-line wing remains in charge of the country.
Mojtaba Khamenei was chosen to succeed Ayatollah Ali Khamenei, who was assassinated on the first day of the conflict involving the United States, Israel and Iran.
Unlike his father, Mojtaba, 56, is discreet. He has never held a government position, given speeches or given public interviews, and only a limited number of photos and videos of him have been published.
United States President Donald Trump should not accept the choice. Although he signaled that he would be open to the possibility of someone linked to the former leadership taking power, Trump made clear his opposition to Mojtaba Khamenei.
“Khamenei’s son is unacceptable to me,” Trump said earlier this week.
Mojtaba Khamenei’s choice could prove controversial within Iran itself. The Islamic Republic was founded in 1979, after the fall of the monarchy, and its ideology is based on the principle that the supreme leader should be chosen for his religious standing and proven leadership, rather than by hereditary succession.
Over the weekend, the United States and Israel launched new waves of airstrikes on Iran, hitting multiple targets including oil depots.
Meanwhile, Iran has attacked energy infrastructure in neighboring Gulf countries. During the night, Saudi Arabia claimed to have intercepted and destroyed two waves of drones heading towards a major oil field.
