US President Donald Trump has reportedly given up his insistence on opening the Strait of Hormuz. He has agreed to end the war by withdrawing from interference in this sea corridor. The Wall Street Journal quoted Donald Trump administration officials as saying that the US President has told his allies that he is ready to end military operations against Iran, even if the Strait of Hormuz remains closed.
Trump said that he would abandon the complex campaign to reopen this sea corridor for the time being. The report said that Trump and his allies believe that trying to open the sea route for oil supplies vital to the world could prolong the war with Iran.
Trump had set a time of 4 to 6 weeks to end this war, but because of this mission the war may extend beyond this time. News agency Xinhua quoted officials as saying that Trump decided that America should focus on achieving its main objective of weakening Iran’s navy and missile stock. Diplomatic pressure should be exerted on Tehran to resume the free flow of trade through the strait.
But Israel is not ready to end the war
On one hand America is talking about ending the war and positive talks with Iran, while on the other hand Israeli Prime Minister Benjamin Netanyahu has directly said that he cannot give any date to end the war. Israel is continuously attacking Iran and Lebanon. Netanyahu said that he has reached half the way but the schedule of the war cannot be announced.
Oil supply will remain a problem
If the Strait of Hormuz is not opened completely, oil from the Gulf countries will not be able to come out. Alternative routes (such as pipelines) have very low capacity. Due to this, there may be shortage of oil in the world. Asian countries will be most affected as they import 80-85% of their oil through this route.
special impact on india
India is the third largest oil importer in the world. A large part of ours comes from Gulf countries. If Hormuz is not opened then the burden on the general budget will increase due to oil becoming expensive. The government may have to give subsidy or the prices of petrol and diesel may increase. This will increase inflation and affect the economy.
If Trump ends the war without opening the Strait of Hormuz, oil prices may still remain high and supply constraints will remain. Countries like India may have to face inflation and economic pressure. Complete relief will be available only when the Strait of Hormuz opens normally again. Right now we are keeping an eye on the market strategy and actions of allied countries.