Explosions heard near Strait of Hormuz: Iran state media - Region - World

Brent crude oil prices climbed above $110 per barrel on Thursday following new Houthi attacks in Saudi Arabia that heightened fears regarding global energy supplies. The price surge occurred as the United States ordered specific diplomats and their dependents to evacuate American diplomatic posts within the Kingdom. West Texas Intermediate crude traded at $98.05, marking an increase of 90 cents, or 0.93 percent. Brent crude stood at $110, rising by $1.15, or 1.06 percent. Other reports indicated Brent futures reached $110.11, a gain of $1.29, or 1.2 percent, at 00:34 GMT. Meanwhile, WTI gained 97 cents, or 1 percent, to hit $98.12. On Wednesday, Brent had closed largely unchanged, while WTI had dropped 67 cents. The escalation in security measures followed a series of strikes by Yemen’s Iran-aligned Houthi group on Wednesday. At least one individual died and eight others sustained injuries during an assault on a civilian airport in Dammam. Additionally, a drone strike on a Saudi oil field resulted in two fatalities. The Saudi energy ministry stated that falling debris from the successful interception of a drone targeting an oil facility caused the deaths. The victims were identified as a Filipino national and a Nepali national, with two others injured. The ministry did not identify the entity responsible for launching the drone at the Shaybah oil field, located near the United Arab Emirates border. Simultaneously, explosions were reported in Sirik, situated in southern Iran’s Hormozgan Province. The official IRNA news agency confirmed that sounds of multiple blasts were heard in the Karpan area of Sirik. Local authorities had not yet determined the nature or origin of the blasts. These incidents marked the first such events in the region this month, occurring during a period described as relatively quiet in the broader conflict between the United States and Iran. That conflict initiated in late February when the United States and Israel launched attacks on Iran, resulting in the death of the country’s supreme leader and senior military commanders. Maritime threats have expanded beyond the Strait of Hormuz. Data from Kpler indicated at least 18 attacks on shipping vessels over the preceding two weeks. Analysts from LSEG warned that Iran was targeting tankers in areas further afield, including the Gulf of Oman. These actions jeopardize Gulf crude loadings and ship-to-ship transfers that support regional exports. In response to the tensions, Iranian Foreign Minister Abbas Araqchi told the Financial Times on Wednesday that Iran was fully prepared to defend itself. President Masoud Pezeshkian stated via state media that the United States could not anticipate dialogue while maintaining a blockade and issuing threats against Iran. Iran has sought to blockade the strategic waterway, requiring all vessels to obtain authorization before crossing. During peacetime, the strait handled approximately one-fifth of the world’s oil supply. In retaliation, the United States implemented a counterblockade on Iranian ports and ships. Consequently, Washington ordered all US embassy staff and their families to depart Saudi Arabia. A diplomatic source informed AFP that families of embassy personnel were also directed to leave the United Arab Emirates, Jordan, Qatar, and Bahrain. Domestic inventory data released by the US Energy Information Administration on Wednesday showed crude oil stocks decreased by 3.06 million barrels to 412.5 million barrels. This decline exceeded the 820,000-barrel draw anticipated by analysts in a Reuters poll. Conversely, distillate inventories, comprising diesel and heating oil, increased by 1.68 million barrels to 104.3 million barrels. Analysts had predicted a decrease of 1.16 million barrels. To address rising prices linked to diesel shortages associated with conflicts in Iran and Ukraine, the Trump administration announced plans to loan up to nearly a third of the US emergency heating oil reserve, which contains one million barrels. Separately, Russian President Vladimir Putin met with US Special Envoy Steve Witkoff in St Petersburg on Wednesday to discuss concluding the war in Ukraine. The Kremlin announced that Putin agreed to resume US-mediated peace negotiations with Ukraine potentially starting next month. Ukrainian President Volodymyr Zelenskyy expressed support for the proposed discussions, stating his hope that they would commence promptly.