IRGC Exercises, Hints of Hormuz Closure Raise Oil Prices

IRGC has launched three-day drills to test its long-range missiles. The move is seen as a defiant response to EU embargo of Iranian oil, which went into effect on Sunday. The US also began to impose tough new sanctions on Iran’s oil industry last week. The new sanctions are designed to inflict economic hardship on the country, forcing its leaders to limit their nuclear program.

Meanwhile, in another sign of defiance at international pressures, the national security committee of Majlis drafted a bill to close the Strait of Hormuz to all tankers carrying oil to EU countries. If this latest move was a posturing to jack up oil prices, it succeeded and the Brent crude approached the $100 mark on Monday.