Why are the US and Iran attacking oil tankers? Could the Strait of Hormuz crisis push oil above $100?
US-Iran tanker attacks are raising fears of oil supply disruptions as Brent crude nears $100. Could the Strait of Hormuz crisis push oil above $100?
The United States and Iran have escalated their attacks at sea, targeting vessels linked to each other. Iran fired missiles at a US aircraft carrier and a Navy destroyer near the Strait of Hormuz, but both ships narrowly avoided the missiles. In retaliation, the US attacked three Iranian oil tankers. One tanker was hit off Kharg Island, the primary Iranian oil-export hub, another was struck near Jask, and a third, unladen vessel was hit in the Gulf of Oman after its crew was ordered to leave.
The US claims the tanker attacks are meant to economically punish Iran. Admiral Brad Cooper, CENTCOM commander, stated that if Iran attacks American vessels, the US will impose even higher economic costs by targeting Iranian ships. Iran asserts the US warships were targeted due to their role in Iran's naval blockade. The choice of targets is notable because the US aircraft carrier is central to US military operations against Iran.
Iran's Islamic Revolutionary Guard Corps targeted the US ships because they were "harassing" Iranian vessels and supporting the blockade. The attacks on oil tankers are significant because they are part of a multi-billion dollar network allegedly financing Iran's Revolutionary Guard Corps and regional allies. This network helps Iran move its oil and generate revenue while evading US sanctions.
The Strait of Hormuz, a key global oil route, is at the heart of the conflict as Iran effectively closed it after US-Israeli attacks began in February. The US claims the strait remains open, but data from Kpler shows only a few vessels passing through recently. If shipping becomes more restricted, global oil supplies could tighten, pushing crude prices higher.
Brent crude futures have already risen to $96.28 a barrel, their highest level since July, up 37% since the conflict began. The $100-a-barrel level is now within reach, and Iranian officials have warned this could happen if tensions continue. The latest attacks could prolong the conflict, with US experts warning escalation is likely unless a political resolution is reached.
Written by urgent.news from Hindustan Times - World News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
