Energy Expert: Strait of Hormuz Closure May Last a Year Amid Fierce Competition for Oil Influence in Iraq

Global energy and oil expert Mamdouh Salama stated that reports of progress in US-Iranian negotiations are merely media claims, emphasizing that Tehran's stance remains highly uncompromising. He explained that reopening the Strait of Hormuz is contingent upon halting US military operations, withdrawing American forces and bases from the Gulf, acknowledging Iran's role in maritime security, and imposing transit fees of 5 to 7 percent on vessel cargoes. Under these conditions, US, Israeli, and allied ships would be barred from transiting the strait. The expert suggested the crisis could persist for months or even a full year, posing severe risks to global oil prices, energy security, and the global economy, with the possibility of Washington reverting to military options. Furthermore, Salama noted that the conflict extends to a US-Chinese rivalry over Iraq's oil sector. Washington seeks to curb growing Chinese influence by expanding its own companies' shares in Iraqi oil projects. The expert urged the Iraqi government to strike a strategic balance, proposing the diversification of currency reserves by adopting the Chinese Yuan for settling some oil exports, with the potential to convert revenues into gold to ensure greater financial independence.