Showdown over Strait of Hormuz enters crucial stage as global economy

The showdown between US President Donald Trump and Iran over access to the Strait of Hormuz has entered a critical stage as experts warn the world economy is under 'major threat.' Iran maintains they have control of the strait, through which 20 percent of the world's oil passes. The regime has barred access through the narrow waterway to anyone except countries allied with Iran . International Energy Agency chief Fatih Birol has now warned that the global economy is under 'major threat' from the ongoing closure of the strait, and said 'no country will be immune' to its effects. 'This crisis, as things stand, is now two oil crises and one gas crash put all together,' he said at the National Press Club in Australia's capital, comparing the current energy crisis to those of the 1970s and the effects of Russia's 2022 invasion of Ukraine. 'The global economy is facing a major, major threat today, and I very much hope that this issue will be resolved as soon as possible,' Birol said. 'No country will be immune to the effects of this crisis if it continues to go in this direction. So there is a need for global efforts,' he added, noting that 'at least 40… energy assets in the region are severely or very severely damaged across nine countries.'

President Trump has threatened to destroy those assets even further, warning on Saturday night that if Iran did not open up the major trade route within 48 hours, he would 'obliterate' the country's nuclear power plants - 'starting with the biggest one first.' He then doubled down on that threat late Sunday night, writing on his Truth Social page: 'PEACE THROUGH STRENGTH, TO PUT IT MILDLY!!!' Iranian officials now have until Monday night to heed that warning, though they have thus far remained firm, warning that if its plants were decimated then energy infrastructure 'across the entire region' would be 'irreversibly destroyed'. They also warned that the Strait of Hormuz would be 'completely closed' and that they would hit Israeli nuclear sites. Iranian President Masoud Pezeshkian vowed that Tehran would 'firmly confront delirious threats on the battlefield.'

He added: 'The illusion of erasing Iran from the map shows desperation against the will of a history–making nation. Threats and terror only strengthen our unity. The Strait of Hormuz is open to all except those who violate our soil.' As Washington DC now debates how to respond to the threat, thousands of US Marines are already heading to the region. Those troops could be used for a potential invasion of Kharg Island to seize the strategically vital territory through which Iran exports 90 percent of its crude oil and to force Tehran to surrender. But the Iranian regime warned if they do so it will 'face a response that is unprecedented' as they would 'set fire to all the facilities in the region' which would likely crash the global economy. Amid the back-and-forth, the World Health Organization has warned that the war has entered a 'perilous stage.' 'I urgently call on all parties to exercise maximum military restraint and avoid any actions that could trigger nuclear incidents,' said Tedros Adhanom Ghebreyesus, WHO director–general.

At the Vatican, Pope Leo XIV also called for an end to hostilities , saying the death and suffering caused by the war in the Middle East are a 'scandal to the whole human family.' 'We cannot remain silent in the face of the suffering of so many people, the defenseless victims of these conflicts. What hurts them hurts the whole of humanity,' Leo said at his weekly Angelus prayer in St. Peter's Square. 'The death and pain caused by these wars are a scandal for the entire human family and a cry that rises to God,' he continued. 'I strongly renew my appeal for us to persevere in prayer, so that hostilities may cease and the way may finally be paved for peace,' the pope added. Yet Iranian forces launched a fresh barrage of missiles at Israel late Sunday night, causing damage at multiple locations in central Israel from debris and fragments of drones , but no injuries were reported.

Footage shared online shows an Israeli defense system, said to be an Arrow 3 exoatmospheric anti-ballistic missile, intercepting an Iranian missile in space. Following the interception, a large light blue and purple glow lights up and lingers in the night sky. The Arrow 3 system is designed to operate outside the Earth's atmosphere, stopping threats while they are in space. The hypersonic anti-ballistic missile has been used to tackle intercontinental ballistic missiles and can be used to hit enemy satellites. Israel has already targeted the Islamic Revolutionary Guard Corps Aerospace Force Headquarters for launching satellites. It has said Iran has fired more than 400 ballistic missiles at the country since the start of the war, with around 92 percent of them intercepted.

Israeli officials now say they will continue striking Iran for at least another three weeks, with IDF chief of staff, Lieutenant General Eyal Zamir saying, 'We are halfway through.' Prime Minister Benjamin Netanyahu also vowed: 'We're going after the IRGC [Iranian Revolutionary Guard Corps], this criminal gang. 'We're going after them personally, their leaders, their installations, their economic assets,' he vowed as he assessed the damage in Dimona, southern Israel, where two Iranian missiles struck and injured more than 160 people, including 70 children. But on Friday, Iranian officials warned that they would start attacking civilian targets worldwide, including at luxury resorts, as millions of Americans headed out for spring break. General Abolfazl Shekarchi further warned that Israeli and US officials would not be safe after strikes wiped out Iran's leadership, including Supreme Leader Ayatollah Ali Khamenei.

Following the threats, Americans around the globe, especially those in the Middle East, were reminded on Sunday by the State Department to follow the guidance of their nearest US embassy or consulate. They were also warned that travel can be disrupted due to 'Periodic airspace closures.' 'US diplomatic facilities, including outside the Middle East, have been targeted,' the alert stated. 'Groups supportive of Iran may target other US interests overseas or locations associated with the United States and/or Americans throughout the world.' The FBI and the Department of Homeland Security have already put their counterterrorism operations on 'high alert' for possible Iranian retaliation on US soil.