IRGC claims that another two oil tankers have been disabled after hitting mines in the Strait of Hormuz
Another day, another story about vessels being struck down in the Strait of Hormuz. That as Iran continues to send a message that if the US continues to escalate tensions, they will hit back at where it hurts most.
Iran’s Islamic Revolutionary Guard Corps (IRGC) is out again claiming that another two oil tankers have been brought to a halt after striking mines in the strait. The accompanying statement reads:
“The IRGC Navy had previously warned of the dangers of passing through the mined channel. Additional punitive measures have also been prepared for shipping companies that, instead of using the authorised route, are deceived by the United States and place their vessels at the enemy’s disposal. These measures will be implemented soon."
It doesn’t sound like things will get any better any time soon on this situation.
And just as a reminder, the longer that this all stays as it is, the more damage it will have on the energy market and disruption to supply chains. In turn, that will have a negative impact to the inflation outlook and that is what’s causing a major ruckus again in markets this past week. That as bond yields are racing higher globally in what looks to be a major shift in the market landscape.
Looking to oil prices today, Brent crude is hovering around $94.85 currently with WTI crude seen at $90.17 on the day. Both are little changed but are seeing strong gains on the week with the former up 7% and the latter up by 8% so far this week.
This article was written by Justin Low at investinglive.com.