US President Donald Trump on Tuesday declared a two-week conditional ceasefire, conditioned on the opening of the Strait of Hormuz. China's diplomatic role was considered crucial in the agreement. US Vice President JD Vance described the agreement as "fragile."
But the attack on the oil refinery on Lavan Island on Wednesday morning highlighted how unstable the ceasefire is. Iranian officials called it a violation of the ceasefire and strongly condemned the attack.
Attack scene and security measures
Flames rose from the refinery at 10 a.m. local time, and smoke billowed into the sky. According to the Mehr news agency, refinery employees were evacuated safely in time. Security and firefighting teams are working to control the fire and secure the premises.
Regional tensions and international response
Some reports also indicate drone attacks in the UAE and Kuwait, further escalating regional tensions. Oil prices immediately surged following the attack. Analysts are warning that if the ceasefire breaks down completely and the Strait of Hormuz closes, it would deal a serious blow to the global economy.
China and other countries have urged all parties to exercise restraint and seek a path to dialogue. The US Central Command has yet to officially comment on the attack.
Oil Markets and Global Impact
The international oil market was rattled following news of the attack. Experts say the situation in the Strait of Hormuz directly impacts global oil supplies. If it were to close, oil prices would rise further and have a significant impact on the global economy.
