At least two tankers were struck over the weekend near Oman and the Strait of Hormuz, Saudi Arabia's Aramco reportedly came under a fresh Houthi strike in Riyadh, and Yemen's government opened a new offensive to retake Houthi-held territory. Brent crude settled at $102.25 a barrel and WTI at $91.11 as the Gulf conflict's maritime front widened.
At least two vessels were struck over the weekend in waters near Oman and Iran, the United Kingdom Maritime Trade Operations Centre reported, while Tehran repeated that the Strait of Hormuz stays shut until its conditions for ending the war with the United States are met. The UKMTO said a crude oil tanker was hit by an unknown projectile near Oman on Saturday, and a second tanker suffered engine-room damage in the strait on Sunday.
Iran holds firm on Hormuz conditions
Iranian Parliament Speaker Mohammad Bagher Ghalibaf said the strait will not reopen until Iran's seven conditions under the Islamabad Memorandum are satisfied, according to state media agency Nour News. Those conditions include a halt to U.S. "acts of aggression," an end to the naval blockade of Iranian ports, and the release of Iranian assets.
The U.S., in turn, has demanded Iran dismantle its nuclear weapons program. President Donald Trump and Iranian President Masoud Pezeshkian signed the Islamabad Memorandum in June, which brought only a brief pause in fighting.
Houthis strike Aramco facility
Yemen's Iran-aligned Houthis said they targeted a Saudi Aramco facility in Riyadh with ballistic missiles and drones, calling it retaliation for Saudi strikes on Sanaa and other Yemeni provinces. A witness described a large plume of smoke and fire rising above the facility. Saudi authorities had not commented, and Aramco did not immediately respond to a request for comment.
Yemen launches counteroffensive
Yemeni President Rashad al-Alimi announced the start of a major military operation to retake territory held by the Houthis, with Saudi Arabia expected to lead aerial combat while Yemeni forces fight on the ground. The Houthis, however, have kept the initiative on the ground since seizing the Bab el-Mandeb Strait, an alternative shipping route to the Red Sea that has gained importance as the Strait of Hormuz remains effectively closed. In the past 48 hours, Houthi forces have also advanced on the last road linking Taiz to Aden, raising the risk of a siege on Yemen's third-largest city.
Oil prices swing on carrier deployment
Reports that the U.S. is sending a third aircraft carrier strike group and an amphibious force of 2,000 Marines to the Middle East pushed crude prices higher on Thursday. Prices eased Friday, though, after the Group of Seven announced a release of diesel and crude oil stocks to ease the burden on consumers. Brent crude futures settled at $102.25 a barrel, down 6 cents, while West Texas Intermediate fell $1.76 to $91.11.
The ongoing strikes and the prospect of wider fighting have kept energy prices elevated in recent weeks, lifting inflation expectations and pressuring government borrowing costs.
Sources: US Top News and Analysis, Commodities & Futures News
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