Strait of Hormuz Tanker Strike Sends Oil Prices Soaring
Oil prices rose on Thursday after another tanker was struck in the Strait of Hormuz. The incident occurred near the Omani coast and did not result in any injuries to the crew, but an ensuing fire was extinguished.
The strike comes as traffic remains subdued in the waterway, with only five confirmed crossings on Tuesday compared to over 130 before the war. The U.K. Maritime Trade Operations agency reported the incident, which has raised concerns about the safety of shipping through the region.
Meanwhile, Qatari Prime Minister Mohammed bin Abdulrahman Al Thani is traveling to Iran in an effort to 'de-escalate tensions' between the US and Iran. The Iranian Revolutionary Guard Corps claims that Tehran and Muscat have reached an agreement on fees charged for transit, but this deal cannot move forward without US acceptance.
The Trump administration has unveiled a plan to impose secondary sanctions on those enabling Iran's economic activity, known as 'Operation Economic Outcast.' Treasury Secretary Scott Bessent stated that anyone facilitating transactions with Iranian oil will be targeted by the measures, including Chinese banks. The plan is set to come into effect soon.