Iran Says Supertanker Hit by Mines in Strait of Hormuz
Key Takeaways
- •Iranian media reported that a supertanker caught fire after hitting two naval mines in the southern Strait of Hormuz.
- •The Revolutionary Guards said the vessel was trying to cross the strait illegally and warned other ships to follow Iranian regulations.
- •Brent crude rose above $90 per barrel and WTI climbed above $85 per barrel as trading opened in Asia on Monday.
- •U.S. forces struck two Iranian rocket launchers on Larak Island after observing preparations linked to sea mines in the Strait of Hormuz.
- •The renewed tensions could make shippers more hesitant to route oil through the Strait of Hormuz.
Iranian state media reported on Monday that a supertanker caught fire after hitting two naval mines in the southern Strait of Hormuz, citing Iran’s Islamic Revolutionary Guard Corps.
The Revolutionary Guards said in a statement carried by Iranian media that the tanker was attempting to transit the strait illegally. The vessel and its crew were not identified.
Iran said any other vessels that try to violate the IRGC’s security rules would face the same fate. The Guards added that complying with Iranian regulations for crossing the Strait of Hormuz is mandatory.
The southern lane of the Strait of Hormuz, near Oman’s coast, has been used by vessels seeking to avoid the Iranian rules governing movement in the northern corridor of the strait, which Tehran controls. The waterway is one of the world’s most closely watched oil chokepoints, so even a reported incident there can affect shipping sentiment well beyond the immediate area.
The claim that a supertanker caught fire after hitting mines in the southern lane came as hostilities in the area reignited over the weekend, pushing oil prices higher as trading opened in Asia on Monday.
By early morning in Europe, Brent crude had moved back above $90 per barrel, rising 3% to $90.72. The U.S. benchmark, WTI crude, also climbed back above $85 per barrel, up 2.8% on the day.
On Sunday, U.S. forces struck two Iranian rocket launchers on Larak Island, which sits inside the Strait of Hormuz. According to a U.S. Central Command spokesperson, the attack followed observations that the IRGC were “preparing to launch rockets with sea mines into the Strait of Hormuz.”
CENTCOM described the strike as a “limited, precise action against IRGC minelaying forces posing an imminent threat in the Strait of Hormuz.”
The renewed hostilities and attacks could make shippers more hesitant to move oil through the Strait of Hormuz, even as various reports have indicated that more oil has been moving out of the Persian Gulf in recent weeks. That leaves the latest reports focused not only on the immediate security claims, but also on how the region’s shipping routes are being monitored as tensions remain elevated.
By Tsvetana Paraskova for Oilprice.com
