Oil Prices Rise Sharply After The Explosion Of An Iranian Tanker Off The Coast Of Saudi Arabia
The futures price for Brent crude oil on the ICE exchange in London rose by 2.4% and exceeded 60.4 USD per barrel. The alleged attack was the latest incident with oil tankers in the Red Sea and the Persian Gulf region and is likely to increase tensions between Iran and Saudi Arabia. The tanker of the National Iranian Oil Company was seriously damaged after an explosion and rocket fire not far from Jeddah in Saudi Arabia. Oil flew into the sea.
The conflict in the Strait of Hormuz arose after tightening the U.S. sanctions against Iran. The U.S. tried to stop oil supplies from Iran, and there were attempts to detain Iranian tankers. In May 2019, two Saudi Arabian tankers were damaged by fire. According to Saudi Arabia, mines were attached to tankers. In August, Britain detained the Iranian supertanker Grace 1 in Gibraltar, and Iran responded by official detention of the British tanker. Soon the tankers were freed by both countries.
However, the conflict became worse. In September, missile strikes were launched at Saudi Arabian oil facilities that reduced the production capacity of the country. The U.S. and the Saudi Arabia accused Iran, but the Iranian authorities rejected the accusations.