'Oil Facilities Could Be Destroyed': Ex-Envoy Warns Against US Action on Iran
Former Indian Ambassador KP Fabian warns that US military action on Iran could spike energy prices and destroy oil facilities in GCC countries.
Former Indian Ambassador to Qatar, KP Fabian, has issued a stark warning regarding the potential for renewed US military action on Iran, suggesting that such a move could trigger a catastrophic escalation in the Middle East. Speaking to ANI, the veteran diplomat cautioned that military intervention would not only threaten regional stability but could lead to the physical destruction of critical oil facilities across Gulf Cooperation Council (GCC) countries.
The Risk of Regional Escalation
Fabian's concerns stem from recent remarks by US President Donald Trump, which hinted at the possibility of another military operation against Iran. According to the former envoy, such a step could exacerbate the existing energy crisis and send global fuel prices skyrocketing.
Analyzing the mindset of the US President, Fabian suggested a conflict of approach within the administration. He noted that while one part of President Trump desires a diplomatic resolution, another believes that military intervention remains a viable option. Furthermore, he suggested that the threat of force might be a strategic tool used by Trump to secure a more favorable deal during diplomatic negotiations.
"President Trump is slightly disconnected from the real world... the resumption of military operations might not achieve the desired outcome and would create too many complications," Fabian stated.
Impact on Global Energy Prices
The threat of conflict is already manifesting in the global markets. Tensions in the Middle East, coupled with attacks by Iran-aligned Houthi militants on Saudi Arabia and fears over the disruption of key oil supply routes, have pushed oil prices to a five-month high.
- Brent Crude: Recently reached USD 117 per barrel (trading around USD 116.91 at the time of reporting).
- WTI Crude: Trading at approximately USD 103.44 per barrel.
The Hidden Cost of Crude Oil
Beyond the headline market figures, KP Fabian highlighted a critical distinction in how oil is priced, which often goes unnoticed by the general public. He explained that the quoted market price is typically based on Free on Board (FOB) terms, but the actual cost to importing nations is based on Cost, Insurance and Freight (CIF).
This means that the real price paid for oil is significantly higher than the market rate due to the added expenses of transportation and insurance. Fabian pointed out that if Brent crude is priced at USD 117 per barrel on an FOB basis, the actual CIF cost could easily soar to USD 157 per barrel.