BEIJING, April 3 (Xinhua) -- A virtual meeting led by Britain on the Strait of Hormuz concluded on Thursday with over 30 countries participating, although the United States was notably absent.
As global oil prices continue to rise and supply chains remain strained, nations worldwide are adopting different strategies to handle the crisis.
COSTLY DEADLOCK
Hormuz, which once saw around 130 vessels passing daily, now has approximately 20,000 seafarers stranded aboard 2,000 ships in its waters, according to the International Maritime Organization.
Lloyd's List Intelligence, a maritime data and intelligence company, revealed that only 292 ships transited the strait between Feb. 28 and March 31, with 71 percent of them being either owned by or affiliated with Iran.
Oil prices soared on Thursday as investors considered how long the Middle East conflict would impede the transportation of crude oil through the strait, reported CNBC.
It added that June futures for international benchmark Brent crude rose more than 6 percent to 107.35 U.S. dollars per barrel.
Starting April 17, Amazon will impose a 3.5 percent fuel and logistics surcharge on merchants' fulfillment fees for sellers in the United States and Canada.
Nobel Laureate in Economic Sciences Paul Krugman on Wednesday argued that rising costs may hit American consumers the hardest through higher prices for food and everyday goods.
Germany's federal government said on Tuesday that petrol prices in the country had been fluctuating up to 22 times a day, as the war and disruptions to oil supplies raised costs.
Around 16 percent of fuel stations in France are experiencing shortages, driven by panic buying and price rises linked to the war with Iran, The Connexion, France's leading English-language media outlet, reported on Thursday.
DIFFERENT STRATEGIES
As global stakeholders take action, Britain led virtual talks on Thursday. Although no concrete solutions were agreed upon, the meeting is considered a first step, as more detailed discussions could involve military planners in the coming weeks, according to Foreign Policy.
The United Nations Security Council is scheduled to vote on Friday on a draft resolution by Bahrain that would authorize defensive measures to secure the Strait.
France circulated a more conciliatory alternative text, while diplomats wait to see whether the two drafts could be reconciled, according to Reuters.
China and Pakistan recently issued a joint five-point initiative to restore peace and stability in the Gulf and the wider Middle East, which includes safeguarding the sovereignty and security of the Gulf states, ending attacks on civilians and non-military targets, and ensuring the security of shipping lanes.
Gulf countries are studying costly options, including expanding oil pipeline capacity and developing new export terminals on the Red Sea coast, to bypass the chokepoint and continue exporting oil and gas, the Financial Times reported Thursday.
Under intense international scrutiny, Tehran said it is drafting a protocol to "monitor transit" through Hormuz and will negotiate with Oman on a joint deal, the Russian news agency Sputnik reported Thursday.
Tanker traffic "should be supervised and coordinated" with Iran and Oman, Iran's Deputy Foreign Minister for Legal and International Affairs Kazem Gharibabadi was quoted by Sputnik as saying.
These requirements would apply after the ongoing conflict "to facilitate and ensure safe passage and provide better services to ships that pass through this route," the official said.
This move raised hopes that the Strait may regain some capacity without requiring military force, slightly easing oil prices from their daily highs.
MOUNTING PRESSURE
The crisis has highlighted the interconnectedness of the global market. Countries are taking action based on the notion that no one can fully insulate itself from a sustained disruption of the Hormuz.
The Strait is essential not only to oil but also to trade in some of the world's most vital resources -- diesel, jet fuel, fertilizer and plastics, according to Krugman.
UN Trade and Development warned Wednesday that if disruptions persist, the situation could evolve into a cascading crisis with far-reaching consequences for development.
Fuel crunches hitting Asia will soon spread west, while Europe is likely to face surging prices to secure cargoes and is at risk of diesel shortages in the coming weeks, Bloomberg said in an article on Monday.
As the crisis spreads, parts of Africa have already faced supply disruptions, with similar pressures expected in Latin America, the report added.
"It's clear to me if this crisis lasts more than three or four months it becomes a systemic problem for the world," TotalEnergies CEO Patrick Pouyanne told Bloomberg.
The economic downturn is compounded by political pressure, especially for many European leaders, who face rising tensions with Washington.
After NATO allies refused to help with the Strait, Trump hinted at withdrawing from the alliance in an interview published on Wednesday in The Telegraph newspaper.
The cumulative effect of similar comments has further strained transatlantic relations, as analysts suggest the fracture has deepened, perhaps to a point of no return.
"Even if Trump does not act on his threat, he has broken new ground simply by making it," Rajan Menon, professor emeritus of international relations at the City College of New York, wrote in an opinion published Friday on Time magazine.
Trevor Taylor, a professorial research fellow on military sciences at Britain's Royal United Services Institute, told The New York Times that Europe is increasingly doubtful about "the reliability of the United States as an ally, and even raised some questions about whether it should actually be seen, in many respects, as a threat." ■
