Investor and co-founder of Echelon Wealth Partners, Peter Schiff, warned on Tuesday that President Donald Trump‘s blockade on the Strait of Hormuz could be perceived as an act of war by affected countries.
Act Of War
Schiff expressed concerns about the U.S.-led blockade of the Strait of Hormuz via a post on X, saying that Trump’s move to use the U.S. Navy could “easily be considered an act of war by other nations impacted by the action,” he said.
“What right does the U.S. have to use military force to prevent China from buying oil?” Schiff asked, raising questions about the move. He also added that China’s motives for retaliating against the U.S. would be clear if Beijing decided to act against the U.S.
24 Hours Of Trump’s Blockade
A Reuters report on Tuesday showcased that over 8 ships had successfully crossed the Strait on the first day of the blockade, including three Iran-linked tankers, the report said. However, the Iran-linked tankers weren’t heading to Iranian ports, so they weren’t affected by the blockade.
Of the 8 ships, one of the ships was the Rich Starry, which was sanctioned by the U.S. in 2023 and is owned by the Shanghai Xuanrun Shipping Co.
U.S. Central Command, in a post on X, shared updates regarding the first 24 hours of the blockade. “U.S. forces are supporting freedom of navigation for vessels transiting the Strait of Hormuz to and from non-Iranian ports,” the post said. It added that six ships were forced to turn around and enter an Iranian port in Oman.
The official Central Command handle also quoted Admiral Brad Cooper, the commander of CENTCOM, on Tuesday, who said that the U.S. was maintaining “maritime supremacy” in the region and that it had successfully halted all of Iran’s international maritime trade activity through the blockade in “less than 36 hours.”
China Criticizes Blockade
China, on the other hand, condemned the blockade, calling it a “dangerous” and “irresponsible” situation. China also took a dig at the U.S. blockade, with President Xi Jinping saying that the international order was “crumbling into disarray” during a meeting with Spanish Prime Minister Pedro Sanchez on Tuesday.
Trump had earlier threatened to impose tariffs on China after reports emerged that Beijing could supply air defense systems to Tehran. He had also said that China could face “big problems” if it went ahead with its shipment of air defenses for Iran.
Peter Schiff’s Oil Warning, JB Pritzker Touts E15 Gas
Schiff had earlier said that the blockade on the Strait of Hormuz could severely impact crude oil prices, warning that the oil prices could hit $150/barrel in the coming days amid escalating tensions in the region.
Meanwhile, Governor JB Pritzker (D-IL) shared that he was pushing to make E15 gasoline available year-round as gas prices hit $4.188/gallon in the U.S. E15 gasoline is a blend of 85% gasoline and 15% ethanol sourced from corn.
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Photo courtesy: Saku_rata160520 via Shutterstock
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