A tanker near Oman was hit by an unidentified projectile and a second vessel reported an explosion nearby, as Iran warned it would shut down additional shipping chokepoints if the U.S. keeps pressing its blockade of the Strait of Hormuz. Oil prices rose more than 1% on the news, with reports suggesting Washington could strike Iran again as soon as this weekend.
A tanker hit off the coast of Oman
The tanker was struck by an unidentified projectile that damaged its engine room, eleven nautical miles northeast of Oman, the UK Maritime Trade Operations Centre said. UKMTO added that the vessel is not under command, though there are no reported casualties or environmental impact. A second tanker in the same waters reported seeing a large splash and explosion close to the ship. Kuwait separately said its air defenses confronted hostile drone attacks launched by Iran.
The temporary ceasefire that followed a U.S.-Iran memorandum of understanding has broken down, with neither side budging on Iran's nuclear program or control of shipping through the strait. Before the war began, about a fifth of the world's oil supplies moved through the Strait of Hormuz.
Trump weighs a fresh round of strikes
According to the Wall Street Journal, unnamed U.S. officials said President Trump has ordered the military to prepare a fresh attack on Iran that could begin as soon as this weekend, though he could still call off the strikes if diplomacy advances. According to the Associated Press, "We will be hitting them very hard," Trump said Friday at a cabinet meeting at Camp David.
An Iranian official also responded. Iran's Supreme National Security Council secretary, Mohammad Bagher Zolghadr, was quoted by the WANA news agency as warning that continued U.S. blockade actions would tighten Iran's grip on the Strait of Hormuz and could shut down other chokepoints as well. The U.S. reimposed a naval blockade on Iranian vessels on July 13, barring ships from entering or leaving Iranian ports.
The risk is spreading beyond Hormuz. Houthi strikes from Yemen and a Thursday drone attack on two ships at Egypt's Damietta port — the first strike on Egyptian soil since the war began — have raised fears the Bab el-Mandeb strait could become a second choke point for Iran to target as the two sides tussle over the Strait of Hormuz.
Oil prices climb as the conflict widens
WTI futures rose more than 1% on Friday to close at $84.67 per barrel. Brent crude, the international benchmark, gained more than 1% to settle at $90.12. Even so, both benchmarks fell more than 5% for the week after a selloff Monday on hopes the conflict would de-escalate. The swing shows how quickly crude oil prices are reacting to each twist in the standoff over the strait.
Axios separately reported that Trump is seriously considering striking Iranian energy targets in the next few days, though he has not given final orders to do so.
Source: CNBC
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