The U.S. military said on Wednesday it completed its latest round of strikes on Iran at President Donald Trump's direction, marking a 12th successive night of American attacks. Five hours. That was the latest round, according to the military. The targets were Iranian military sites, including maritime capabilities, missile and drone storage facilities, coastal surveillance sites and air defense assets. In July, U.S. forces have targeted dozens of Iranian military sites on land while resuming a blockade against Iran at sea, the military said.
The State Monopoly at Sea
Oil prices rose for a fifth day on Thursday as attacks on tankers in the Red Sea by Yemen's Houthis and strikes between the U.S. and Iran once again nearly shut the Strait of Hormuz. Brent crude futures rose $2.42, or 2.6%, to $96.49 by 0640 GMT, the highest since June 8, after settling up more than $3 at $94.07 in the previous session, just shy of a six-week high. U.S. West Texas Intermediate crude climbed $1.59, or 1.8%, to $88.42, after Wednesday's rise of 3%.
Iran's Revolutionary Guards said an oil tanker caught fire after an explosion while attempting to follow a route they described as mined in the southern area of the Strait of Hormuz near the coast of Oman, while two others had turned back. In a statement, the Guards said the strait was under their control and "completely closed" while U.S. actions continued in the region, warning that no tanker would be allowed to enter or leave without coordination with Iran. The Houthis said they had carried out a military operation targeting two Saudi oil tankers, and maritime security reports said one of the vessels identified by the group, the Saudi-flagged tanker Encelia, had been hit in the Red Sea. The Houthis said they had forced about 10 ships to retreat and return after warning vessels against sailing to Saudi ports. Reuters could not immediately verify that account.
Who Gets Choked First
Besides the renewed conflict over control of the key waterway, the Iran-aligned Houthis have opened a new front by targeting vessels carrying Saudi oil in the Bab el-Mandeb strait and trying to impose a naval blockade of Saudi Arabia. Oil prices are facing a rare risk from simultaneous disruptions at both the Bab el-Mandeb and the Strait of Hormuz, said Priyanka Sachdeva, senior market analyst at Phillip Nova. She said, "Geopolitical premiums have returned, but a sustained (price) rally will require evidence of prolonged shipping disruptions or meaningful supply outages."
The new threat to Red Sea passage could interrupt up to 5 million barrels per day of oil supply, and the main route for Gulf oil that bypasses the Strait of Hormuz, said Saul Kavonic, the head of energy research at MST Marquee. Trump vowed on Wednesday to destroy an Iranian bridge or power plant every time Iran shoots at a ship in the Strait of Hormuz, and has also previously threatened to target energy plants and bridges. Iran's joint military command warned that if the threat was carried out, its forces would target regional oil, gas, electricity and economic facilities, state media said. The 1949 Geneva Conventions on humanitarian conduct in war prohibit attacks on sites considered essential for civilians. International law experts in the United States said in April, after Trump's threats, that such attacks may amount to war crimes. Trump's threat that month to destroy Iran's entire civilization also drew wide condemnation.
The war began when the U.S. and Israel attacked Iran on February 28 and Iran responded with its own strikes on Israel and Gulf states that host U.S. bases. U.S.-Israeli strikes on Iran and Israeli attacks on Lebanon have since killed thousands and displaced millions. U.S. troop deaths have risen to 18 in recent days.