US forces strike Iranian tankers linked to IRGC after warship attack claim

US officials said American forces attacked multiple Iranian tankers associated with the Islamic Revolutionary Guard Corps (IRGC) in response to an attempted missile attack on a US warship, Bloomberg reported Tuesday.

US Central Command (CENTCOM) said the vessels were struck in the Gulf of Oman and near Iran’s Kharg Island after crews were ordered to abandon ship. The tankers were described as part of a multibillion-dollar shadow network funding the IRGC and its regional proxies.

The IRGC warned that ships carrying US forces at ports in Kuwait and Bahrain could become targets for retaliation.

Iran’s semi-official Mehr news agency reported hearing explosions on Kharg Island, the country’s primary oil-export hub.

Iran-backed Houthi fighters said they targeted Saudi Arabia’s 400,000-barrel-a-day Jazan refinery and infrastructure serving the domestic energy market.

Market reaction

At the time of publication, West Texas Intermediate (WTI) crude was up 0.13% at $92.35 a barrel.

WTI Oil FAQs

WTI Oil is a grade of crude traded on international markets. WTI stands for West Texas Intermediate, one of the three major benchmarks alongside Brent and Dubai Crude. It is classified as “light” and “sweet” because of its relatively low gravity and sulfur content. Produced in the United States and distributed through the Cushing hub, WTI is regarded as a high-quality, easily refined crude and serves as a key benchmark widely quoted in the energy market.

Supply and demand are the primary forces driving WTI prices, as they are for other commodities. Strong global growth generally increases energy demand, while weak growth can reduce it. Political instability, wars and sanctions may disrupt production or transportation, affecting prices. OPEC’s production decisions and the value of the US dollar also influence the market, since crude oil is primarily traded in dollars.

Weekly inventory reports from the American Petroleum Institute (API) and the US Energy Information Administration (EIA) can affect WTI prices. Falling inventories may indicate stronger demand and support higher prices, while rising stocks may suggest increased supply and put downward pressure on prices. The EIA report is government data and is often viewed as especially important.

The Organization of the Petroleum Exporting Countries (OPEC) consists of 12 oil-producing nations and sets production quotas for its members during regular meetings. Lower quotas can tighten supply and support prices, while increased production can have the opposite effect. OPEC+ includes ten additional non-OPEC producers, most notably Russia.

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