A tanker was struck off Oman after Iran warned of closing shipping routes. Oil rose Friday but fell for the week. U.S. plans fresh strikes as ceasefire collapses.
Alpha Score of 42 reflects weak overall profile with weak momentum, poor value, weak quality, moderate sentiment.
A tanker off Oman reported being struck by an unknown projectile overnight, and a second vessel said it saw an explosion nearby. The attacks came as Iran warned Washington that a U.S. naval blockade of the Strait of Hormuz would lead to the closure of other key shipping routes.
Kuwait separately said its air defenses confronted hostile drone attacks by Iran. The Wall Street Journal, citing unnamed U.S. officials, reported Friday that President Donald Trump has ordered the military to launch a fresh attack on Iran that could begin as soon as this weekend. Trump could call off the planned strikes if there is progress on the diplomatic front, the officials told the Journal.
West Texas Intermediate crude rose more than 1% Friday to close at $84.67 a barrel. Brent crude, the international benchmark, gained more than 1% to settle at $90.12. Prices fell more than 5% for the week after selling off Monday on hopes the conflict in the Middle East would de-escalate.
Tanker Struck Off Oman
The United Kingdom Maritime Trade Operations Centre, an organization backed by the British Navy, said Saturday it received a report of a tanker being hit by an "unknown projectile which has caused damage to the engine room."
"The tanker is not under command and the regional Coast Guard have been informed. There are no reported casualties or environmental impact," UKMTO said of the incident 11 nautical miles northeast of Oman.
Another tanker in the waters off Oman reported "seeing a large splash and explosion in close proximity to the vessel," UKMTO said.
A temporary ceasefire after the signing of a memorandum of understanding between the U.S. and Iran on June 17 has effectively broken down. Neither side has given way on key sticking points, including Iran's nuclear program and control of shipping through the Strait of Hormuz. About a fifth of the world's oil supplies moved through that strait before the war began on Feb. 28.
Over the last week, the U.S. completed a "heavy wave" of strikes against Iran, hitting dozens of Islamic Revolutionary Guard Corps targets. In retaliation, Iran attacked U.S. military bases in Kuwait and Bahrain.
Crude Settles Higher but Down for Week
Friday's oil gains recouped only a fraction of the week's losses. Monday's sharp selloff reflected market bets that diplomacy might cool the conflict. Those bets faded as the week wore on.
"We will be hitting them very hard," The Associated Press quoted Trump as saying Friday at a televised cabinet meeting at the Camp David presidential retreat. "And you know at some point, they're going to say, 'We just can't take it anymore.'"
Axios quoted an unnamed U.S. official as saying that Trump is seriously considering attacking Iranian energy targets in the next few days, but hasn't given final orders to do so.
Iran Threatens Wider Chokepoint Closure
An Iranian official warned that the U.S.'s actions would lead to Iran tightening its control over critical maritime passages.
"The continuation of the naval blockade and warmongering by the U.S. regime will not only lock the Strait of Hormuz tighter, but will also shut down other straits and chokepoints," Iran's WANA news agency quoted Mohammad Bagher Zolghadr, Secretary of Iran's Supreme National Security Council, as saying.
"The price for this will be paid by the global economy, the energy market, and American voters," Zolghadr reportedly said.
The U.S. reimposed a naval blockade on Iranian ships on July 13, preventing its vessels from entering or leaving its ports.
Recent strikes by Iran-backed Houthi fighters in Yemen and Friday's drone strike in Egypt have raised fears that the crucial Bab el-Mandeb strait at the southern end of the Red Sea could become a second choke point for Iran to target as the two sides tussle over the Strait of Hormuz.
Egypt said Thursday that a drone hit two ships at its Mediterranean port of Damietta, triggering a fire. No one claimed responsibility for the strike, which marks the first attack on Egyptian soil since the war began and another sign that the conflict is expanding.
Brent crude settled at $90.12 a barrel Friday, down 5.2% for the week.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.