US Strikes Iranian Oil Tankers Amid Escalating Tensions
The latest escalation in tensions between the United States and Iran has sent shockwaves through the global oil market. On Saturday, the Islamic Revolutionary Guard Corps fired ballistic missiles towards two U.S. Navy ships, but the American vessels were able to avoid the attacks without sustaining any damage or injuries.
In retaliation, the U.S. military struck three Iranian crude-oil carriers, with two of them being permanently disabled and a third destroyed after its crew was ordered to abandon ship. The strikes occurred near Kharg Island, Iran's principal oil-export terminal.
The Strait of Hormuz, which connects the Persian Gulf with the Gulf of Oman, is a critical waterway for global oil trade, carrying approximately 25% of seaborne oil. Any disruption in this region can have far-reaching consequences for the market, and recent events have raised concerns about the safety of shipping through this area.
Oil prices had already climbed sharply last week, with Brent crude settling at $96.28 a barrel, up 7.6% for the week. With the tanker strikes coming after Friday's main trading session, their full effect on prices has yet to be reflected in these settlements.