Oil surges as Hormuz siege refuses to break
Brent crude’s price has opened the week above $90/bbl mark amid an utter absence of de-escalation signs in the Middle East.
IMAGE: Strait of Hormuz. Getty Images
The US and Iran have continued fire exchange over the weekend, with the US Central Command (CENTCOM) conducting the ninth consecutive day of strikes against Iran.
The escalation has sent Brent’s price soaring – effectively erasing hopes of lasting peace in the Middle East.
CENTCOM has targeted “Iranian military command centers, air defense and coastal surveillance sites, maritime capabilities, missile and drone launch sites,” it said.
Meanwhile, Iran said it has targeted US airbases in Gulf countries – including a US aircraft at Jordan's Aqaba airport and military assets at Kuwait's Al-Adiri camp and Ali Al Salem Air Base.
Kuwait’s authorities said one of the country's power generation and water desalination stations was hit in an Iranian attack, Reuters reported. The attack caused a fire and disrupted many electricity generation units.
Two US service members were killed, in addition to other missing personnels, following these attacks, CENTCOM said.
“If this escalation goes unchecked, we [the oil market] could return to an environment of wide-scale attacks across the Persian Gulf,” two analysts from ING Bank said. “Vessel flows have essentially ground to a halt,” they added.
Merchant vessels caught in the crossfire
More commercial tankers came under attack while transiting the Strait of Hormuz over the weekend and into this week, the United Kingdom Maritime Trade Operations (UKMTO) reported.
One vessel, about 8 nautical miles (NM) northwest of Kumzar, Oman, caught fire earlier today, UKMTO reported. The cause of the fire has not been verified yet.
Another tanker was hit by an unknown projectile about 19NM east of Khasab, Oman. The attack caused structural damage to the port side.
The UKMTO reported an incident of hijack about 65NM south of Al Mukalla, Yemen. The vessel was boarded by unauthorised personnel whilst transiting east in the Gulf of Aden and maneuvered into Somalian territorial waters.
Tehran has also claimed that two oil tankers exploded after attempting to an unsafe southern route through the Strait of Hormuz, Reuters reported.
“Under no circumstances and in no way will we allow the United States, as a foreign and extra-regional country, to interfere in the Strait of Hormuz,” Iran’s military command spokesperson Ebrahim Zolfaqari said in a televised statement.
By Aparupa Mazumder
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