US Wrecks 10 Iranian Tankers, Sending Oil Market into Turmoil
The US Central Command (CENTCOM) has confirmed that it destroyed 10 Iranian oil tankers over the past week, targeting vessels linked to Iran's shadow oil trade. The strikes are part of a multibillion-dollar network funding the IRGC and its regional allies.
The destruction of these tankers could severely impact Iran's ability to make money from oil exports and move its barrels around the region.
Hitting Iran's oil export infrastructure can also hurt the global oil market, with Brent crude prices climbing past $100 a barrel on September 9 as traders reacted to the latest attacks. The Strait of Hormuz, which normally moves about a fifth of the world's oil and gas, has seen traffic plummet from around 8 million barrels a day in late August to just over 1 million barrels a day this week.
The situation is precarious, with some experts warning that further escalation could lead to an oil shock. If tanker attacks continue to limit the volume of oil shipments passing through the Strait of Hormuz, $100 oil may not represent the upper limit.