A vessel was struck by an unknown projectile in the Strait of Hormuz on Saturday, UKMTO said, sparking a fire and a crew evacuation. The attack came as Saudi Arabia keeps its main pipeline shut after drone strikes and Iran signaled no talks with the U.S. are on the table, keeping oil prices elevated after a week of sharp gains.
Vessel struck, evacuation ordered
The United Kingdom Maritime Trade Operations Centre said a vessel was hit by an unknown projectile while transiting the Strait of Hormuz late Saturday. A fire broke out onboard, and local authorities helped evacuate the crew. Iran separately said one person was killed and four crew members were wounded aboard an Iranian commercial vessel struck off its own coast.
Saudi pipeline still down, Houthis advance
Saudi Arabia shut its East-West crude pipeline on Friday as a precaution after drone strikes launched from Iraq hit the line in the Riyadh and Medina regions. Traders and Saudi oil buyers told Reuters that Riyadh has enough oil stored at its Yanbu port to sustain exports for five to seven days if the pipeline remains offline, after which as much as 4% of global oil supply could be jeopardized. The same day, Yemen's Houthis captured Perim Island in the Bab El-Mandeb strait. Separately, the U.S. diesel retail price rose to another all-time high above $6.20 a gallon on Sunday.
No talks with Washington, Oman meeting looms
According to CNBC, Ebrahim Azizi, head of the Iranian parliament's national security committee, said "No negotiations. Until Iran's terms are met, talks are futile." Despite that stance, officials from Iran and Gulf countries would meet in Oman's capital, Muscat, on Monday to sign an agreement establishing an Iran-Oman shipping route through the strait. Iran's foreign minister, however, told a pan-Arab outlet that Tehran would not reopen the strait until the U.S. meets its demands, a Reuters report noted.
Oil holds near multi-month highs
Brent crude settled down 2.8% at $104.61 a barrel on Friday, while WTI fell 2.4% to $100.05, both still marking sharp weekly gains after breaking above $100 for the first time in months. CENTCOM said it has redirected 100 commercial vessels over the past 60 days since resuming its naval blockade against Iran, adding that zero ships have passed without U.S. clearance. President Trump said Saturday the war would likely end soon after November's midterms and predicted oil prices would fall once it does.
Sources: CNBC, Reuters via Investing.com
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