Iran’s New Supreme Leader Vows To Keep Hormuz Shut, Netanyahu Issues Threat

DUBAI/BEIRUT, March 12 (Reuters) – Iran will keep the Strait of Hormuz closed and continue to fight as leverage against the United States and Israel, new Supreme Leader Mojtaba Khamenei said on Thursday, in the first defiant comments attributed to him since succeeding his slain father.

Hours later, Israeli Prime Minister Benjamin Netanyahu made his own strong statement, using his first press conference since the start of the war; He made a veiled threat to kill Khamenei and advocated a military attack on Iran that cost thousands of lives and shook energy and stock markets.

Standing between two Israeli flags and asking questions via video link, Netanyahu said, “I will not take out a life insurance policy for any of the leaders of the terrorist organization… I do not intend to give a definitive message about what we are planning or what we will do here.”

In Iran, Khamenei did not appear on stage in person and his words were read by a state television presenter. No images of him have been released since the Israeli attack at the beginning of the war, which killed most of his family, including his father and wife.

Khamenei’s statement called on Iran’s neighbors to close US bases on their territory and warned that Iran would continue to target them.

“I assure everyone that we will not neglect to avenge the blood of your martyrs,” said the hard-line cleric, who is close to Iran’s top military force.

“The people’s demand is to maintain our effective defense and make the enemy regret it. The means of blocking the Strait of Hormuz should continue to be used,” Khamenei added, referring to the shipping route through which one-fifth of global oil normally passes through the Iranian coast.

Iranian state television did not provide any explanation as to why the message was read rather than delivered in person. Iranian officials said Khamenei was slightly injured in the first airstrikes on February 28, but the extent of his injuries is unclear.

The prospect of one of the most severe disruptions ever to global energy supplies has sent oil prices up nearly 9 percent to $100 a barrel after falling earlier in the week on hopes for a quick end to the conflict.

US stocks fell on Thursday; The S&P 500 posted its biggest three-day percentage drop in a month.

Two tankers caught fire in an Iraqi port after Iran hit boats suspected of being loaded with explosives; It was a sign of open defiance against US President Donald Trump, who said on Wednesday that the US had already won the war.

Images taken from the Iraqi port of Basra, verified by Reuters, showed ships engulfed by huge orange fireballs that lit up the night sky. At least one crew member was killed.

Hours ago, three more ships were hit in the Gulf. Iran’s Revolutionary Guard has claimed responsibility for at least one attack on a cargo ship that was set on fire in Thailand. Another container ship was reportedly hit by an unknown projectile near the United Arab Emirates.

On another front of the unpredictable war, Israeli airstrikes hit a building in central Beirut on Thursday, sending thick smoke over the Lebanese capital.

Israel also ordered residents in another part of southern Lebanon out, intensifying its attack after the Iran-backed Hezbollah group fired the largest volley of rockets into Israel since the start of the war.

The war has killed more than 2,000 people so far, including 700 in Lebanon.

More drones have reportedly flown to Kuwait, Iraq, the UAE, Bahrain and Oman, refuting claims that the US and Israel have destroyed most of Iran’s long-range weapons stockpile.

Additionally, a US military refueling plane crashed in western Iraq on Thursday; The US witnessed an incident that it said involved another aircraft but was not the result of enemy or friendly fire. Seven US soldiers have been killed since the US and Israel began attacks against Iran on February 28.

Iran has said it will not allow oil to pass through the strait until U.S. and Israeli attacks end, but Trump downplayed the high prices.

“The USA is by far the largest Oil Producer in the world, so we make a lot of money when oil prices go up,” Trump wrote on social media.

The US Navy, perhaps with an international coalition, will escort ships through the Strait of Hormuz when militarily feasible, US Treasury Secretary Scott Bessent said in an interview with Sky News.

The United States is a net oil exporter but is also the world’s largest oil consumer. Economists say persistently high prices will lead to widespread inflation.

Separately, Trump said it was welcome for Iran’s men’s national football team to participate in the 2026 World Cup hosted by the United States, but said it was inappropriate for them to be there “for their own lives and safety.”

In Iran, residents said security forces had increased their presence to show they maintained control.

“Security forces are everywhere, more than before. People are afraid to go out, but supermarkets are open,” said Majan, a 35-year-old teacher, speaking by phone from Tehran.

Israel said that it hit the checkpoints of the Revolutionary Guard’s volunteer militia Basij in Tehran.

Israel and the United States called on Iranians to rise up and overthrow the clerics. Many Iranians want change, and some openly celebrated the elderly religious leader’s death on February 28, the first day of the war, after his forces killed thousands of anti-government protesters in January. But while the country was under attack, there was no sign of organized opposition.

Iran’s message is that its current strategy is to inflict a prolonged economic shock to force Trump to back down. The world should prepare for oil prices of $200 per barrel, a spokesman for Iran’s military command said on Wednesday.

U.S. Energy Secretary Chris Wright said Thursday he didn’t expect that to happen but didn’t rule it out entirely. “I would say it’s unlikely, but we’re focused on the military operation and solving the problem,” Wright told CNN.

Oil prices rose despite Wednesday’s announcement that developed countries will extract 400 million barrels of oil from strategic reserves, almost half of which will come from the United States.

(Reporting by Reuters bureaus; Writing by Peter Graff, Crispian Balmer and Patricia Zengerle; Editing by Alex Richardson, Gareth Jones, Ros Russell and Cynthia Osterman)