Saudi Shuttle Vessels Steer Oil Past Hormuz Tensions
Iran's Revolutionary Guard Corps (IRGC) claimed to have struck and detained a Togo-flagged tanker, the Trend, in the Strait of Hormuz on Friday. The incident occurred just hours after President Trump told Axios that he was weighing whether to go in and destroy the Iranian government outright or hold back instead.
The UK Maritime Trade Operations agency reported another tanker hit by an unknown projectile near Khasab, Oman, around the same time. However, it is unclear if this incident describes the Trend or a different ship entirely.
Brent crude has pared its early losses and is down just 18 cents on the day to $104.64 a barrel. WTI has turned higher instead, up $1.14 to $103.05, after falling more than 2% earlier in the session.
Saudi Arabia's routing of more crude through the Strait of Hormuz itself via shuttle vessels that load onto tankers waiting just outside the strait is a key factor in oil's muted reaction to the incident. The kingdom's East-West pipeline has been offline since a drone hit it on September 10, but Aramco says it can bring back half of that line within days.