U.S. forces struck three Iranian crude oil carriers as Energy Secretary Chris Wright said Washington may never reach a nuclear deal with Tehran. Iran's parliament speaker warned that future attacks would draw a far harsher response, while U.S. diesel prices have hit record highs.
U.S. Central Command struck three Iranian crude oil carriers over the weekend, permanently disabling one off Kharg Island, one near Jask, and hitting a third tanker in the Gulf of Oman. The strikes came as Energy Secretary Chris Wright said the U.S. may never secure a nuclear agreement with Iran.
Wright doubts a nuclear deal
Speaking on ABC's "This Week" on Sunday, Wright said the administration might abandon the search for a negotiated settlement. According to CNBC, Wright said: "It may be simply destroying their capabilities to do it." He added the U.S. military's biggest role in the region is now to stop the export of Iranian crude, crude-related products and natural gas.
CENTCOM said the tanker strikes were retaliation for ballistic missiles the Islamic Revolutionary Guard Corps launched at two U.S. Navy warships, both of which evaded the attacks without casualties. Iran's parliament speaker, Mohammad Bagher Ghalibaf, warned that any future violation of Iran's interests would draw a far harsher response, while acknowledging severe economic strain at home.
Exports disrupted, sanctions tightened
Iran is OPEC's third-largest producer and exported 90% of its crude via Kharg Island before the war, but flows have been curtailed by a U.S. blockade in place since mid-April. The conflict, which began Feb. 28 with American and Israeli airstrikes, has effectively shut the Strait of Hormuz. The tanker strikes followed fresh Treasury sanctions on a Turkish investment bank and two subsidiaries accused of funding an arm of Iran's Revolutionary Guard, part of sweeping measures launched in late August targeting Iran's digital assets, gold reserves and shipping.
Washington leans on output, not export limits
The disruption has pushed U.S. diesel prices to an average of $5.90 a gallon on Saturday, according to AAA, fueling speculation that Washington could restrict crude and fuel exports. Wright told CBS's "Face the Nation" the administration is instead focused on maximizing production, saying the solution to a supply shortage is to increase supply. He noted the diesel squeeze has been worsened by drone strike damage to Russian refineries and Moscow's own ban on fuel exports.
Sources: CNBC, Investing.com
Trading involves risk.
Risk Disclaimer
