Key facts
- Iran reported stopping two vessels attempting to exit the Strait of Hormuz.
- Oil prices rose more than 1% on Friday due to concerns over global energy supplies.
- Iran's IRGC previously struck two oil tankers under US escort in the Strait of Hormuz.
- The Strait of Hormuz is a critical waterway for global energy shipments.
- The US and Saudi Arabia conducted retaliatory strikes against Iran-backed groups earlier in the week.
Oil prices rose more than 1% on Friday after Iran announced it had stopped two vessels attempting to exit the Strait of Hormuz, a crucial chokepoint for global energy supplies. This development comes after a drone attack on ships in an Egyptian port earlier in the week and follows previous escalations in the region.
Earlier in the week, Iran's IRGC had struck two oil tankers under US escort in the Strait of Hormuz, leading to a sharp decline in crude oil futures as traders initially hoped for diplomatic solutions. The US and Saudi Arabia responded with retaliatory strikes against Iran-backed groups. Despite these exchanges, Iran's latest statement regarding stopping vessels has reignited concerns over supply security.
Iran's Strait of Hormuz management body stated that crossings remained impossible due to 'continued aggressive actions by U.S. military forces,' though some ships have negotiated passage with Tehran. Shipping data indicated that some large tankers carrying oil did transit the strait, and others with transponders off may have also passed through.
Economists and analysts polled by Reuters anticipate further oil price increases this year. Meanwhile, Saudi Arabia has proposed a multinational maritime defence coalition to protect shipping in the Red Sea region, where Iran-aligned Houthis have also threatened shipping lanes.