Iran adviser warns war could expand into Indian Ocean as Brent nears $106

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Iran adviser warns war could expand into Indian Ocean as Brent nears $106
PrimeXBT Editorial Team
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An adviser to Iran's Supreme Leader warned the war could expand into the Indian Ocean if the country is attacked again, and Brent crude surged toward $106 on the remarks. The warning came as Iranian negotiators met a US team in New York and a Saudi-led coalition intercepted new Houthi missiles.

Yahya Rahim Safavi, an adviser to Iran's Supreme Leader Mojtaba Khamenei, warned Thursday that the war could expand further if the Islamic Republic suffers another attack. He said it is possible that, in response to more war, the front could expand from the Persian Gulf and Strait of Hormuz, through the Red Sea, into the Indian Ocean and beyond — the first time an adviser to Iran's supreme leader has explicitly named the Indian Ocean as a target region.

Brent crude surged to around $106 on the comments, according to Bloomberg, further undercutting hopes for a deal.

Diego Garcia in the crosshairs

The British-US military base at Diego Garcia, the Chagos Islands' largest landmass, sits roughly 2,400 miles from Iran in the Indian Ocean. Iran is believed to have fired ICBMs at the base during Trump's Operation Epic Fury. The base was first targeted on March 21st, when one missile suffered a mid-flight malfunction and a second was engaged by an SM-3 interceptor fired from a US Navy vessel, though it's unclear whether that interceptor ever hit its target, the Wall Street Journal reported at the time.

Diplomacy stalls in New York

Iranian negotiators met the US team this week in New York on the sidelines of the UN General Assembly, but they are vowing not to back off Tehran's conditions for ending the war. The talks come as a Saudi-led coalition in Yemen intercepted six ballistic missiles launched by Iran-backed Houthi forces.

IRGC hardens its conditions

IRGC spokesman Brig. Gen. Hossein Mohbi, who told AFP this week that Iran toughened its terms after the latest Houthi strikes, said: "They broke the agreement and committed another vicious act." He added that Iran sees itself as the war's victor and is turning that position into what he called a total deterrent force, and warned that Washington will only make things harder for itself if it does not change course.

Source: Oilprice.com

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