Iran's IRGC claims attack on two tankers, oil prices rise

Published Jul 31, 06:59 PM UTC

Oil prices rose on Friday after Iran's Islamic Revolutionary Guard Corps claimed it attacked two tankers attempting to transit the Strait of Hormuz under U.S. military escort, according to state-run PressTV. Four other tankers reportedly turned back. West Texas Intermediate futures closed above $84.67 per barrel, and Brent crude settled at $90.12, though prices fell over 5% for the week amid earlier hopes of de-escalation. U.S. and British maritime security organizations have not confirmed the attacks. The threat to oil supplies has expanded beyond Hormuz, with Houthi allies declaring a maritime embargo against Saudi Arabia and attacking tankers in the Red Sea, and a drone strike damaging LNG ships at Egypt's Damietta port. Additional tanker attacks occurred in the Black Sea as Ukraine targets Russian energy infrastructure, jeopardizing Caspian pipeline exports. S&P Global's Dan Yergin noted that six seas have become arenas for oil war, with about 6 million barrels per day of refining capacity offline, affecting global economies including farmers in Brazil facing higher diesel prices.