Crude oil prices recently surged more than 3% to $52.66 …
All after two oil tankers were attacked near the Strait of Hormuz, leaving one ship ablaze. It’s now the second time in a month that tankers have been struck in the oil-rich region, and U.S. officials are pointing the finger at Iran.
They come just a month after the United Arab Emirates (UAE) said a total of four oil vessels were attacked off its coast at the port of Fujairah.
It’s “highly likely” Iran caused these attacks, a U.S. defense official told CBS.
In addition, a spokesman for the Saudi-led coalition supporting Yemen has also blamed Iran for the attack, saying it can connect it to a similar bombing in the Red Sea in 2018.
So, what happens next?
Officials now say “any retaliation” from the U.S. will depend on whether it can recover enough evidence linking the attacks back to Iran. After all, an Iranian attack sends a powerful message that transportation through this essential chokepoint is not safe without its consent.
However, Iran has denied involvement in the attack.
Instead, Iran’s Foreign Minister Mohammad Javad Zarif tweeted, “Suspicious doesn’t begin to describe what likely transpired this morning. Reported attacks on Japan-related tankers occurred while PM Abe Shinzo was meeting with Ayatollah Khamenei for extensive and friendly talks.”
Threat of War in the Air
If Iran was responsible, we could see a strong war threat.
Tensions between the U.S. and Iran have skyrocketed in recent weeks, with President Trump dispatching warships and bombers throughout the Persian Gulf. In return, the Iranians have threatened to resume higher uranium enrichment.
In addition, White House National Security Advisor John Bolton announced the deployment of the USS Abraham Lincoln strike group and a bomber task force in response to a “number of troubling and escalatory indications and warnings,” as quoted by Fortune.
Oil Prices in the Crosshairs
Along with a threat of war comes the fear of higher oil prices.
In fact, Iran has already warned that the “first bullet fired in the Persian Gulf will push oil prices above $100. This would be unbearable to America, Europe and the U.S. allies like Japan and South Korea,” as quoted by CNBC.
Do you think tensions with Iran will lead to war and $100 oil prices? Leave a comment.
