Oil prices climbed Thursday after Iranian forces said they targeted two U.S. vessels near the Strait of Hormuz and Iran-backed Houthi rebels seized a key port city on Yemen’s western coast.
Iran’s Islamic Revolutionary Guard Corps announced that its navy targeted two U.S. Navy vessels, eight oil tankers and 10 other ships in response to U.S. Central Command’s attacks on five Iranian tankers earlier in the week.
There was no immediate comment from CENTCOM, which oversees U.S. military operations in the Middle East.
CENTCOM on Wednesday rejected IRGC claims of striking two Navy destroyers, saying Iran had failed to hit any U.S. vessel.
Thursday’s attack is Iran’s latest retaliatory strike this week after its forces targeted a U.S. military base in Jordan. Jordanian military officials said its forces intercepted 18 of 20 ballistic missiles launched from Iran, with two landing in unoccupied areas. No casualties were reported.
Iran’s Defense Ministry said Thursday that its industry remains operational and “stronger, smarter and more advanced than before,” and it threatened Tehran’s enemies with more strikes.
The Wall Street Journal reported Thursday that Iran had resumed production of ballistic missiles using stockpiled components in underground facilities. The revelation could indicate that Iran may be able to fight for much longer than expected, despite extensive U.S. attacks on Tehran’s defense industry.
Separately, IRGC Brig. Gen. Hassan Hassanzadeh said Iran was on the cusp of moving beyond defensive operations and would soon move to devastating offensive strikes.
“This is a turning point whose effects the enemies will soon understand,” Gen. Hassanzadeh said in a statement carried by state-affiliated media. “We are prepared to be present at any point in the country at high speed and destroy the enemy under any circumstances.”
Thursday’s attacks could spell more trouble for international shipping in the Middle East, which has been under constant threat since the U.S.-Iran war began in late February.
Iran has kept closed the Strait of Hormuz, a vital shipping route for one-fifth of the world’s supply of oil and natural gas, since March with drones, missiles, sea mines and small boats.
Persian Gulf powers that rely on revenue from oil exports have taken a major financial hit due to the strait’s closure and have looked for shipping alternatives.
One of those alternatives was the Bab al-Mandab Strait, a narrow passage at the southern end of the Red Sea. Saudi Arabia has increasingly relied on the strait to export oil as conditions in the Strait of Hormuz deteriorated.
But Iran-backed Houthi rebels, who control a large portion of Yemen’s western provinces, have increasingly targeted Saudi-linked vessels in the waterway in recent weeks and begun striking at energy infrastructure in Saudi Arabia itself.
On Thursday, Houthi forces seized the town of Mocha and its port on the Red Sea near the Bab al-Mandab Strait. The victory could provide the Houthis with greater control over the shipping route and further threaten energy markets.
Iran’s continued strikes on shipping and the Houthi advance sent oil prices surging Thursday for a second consecutive day of major price increases.
Brent crude, the international benchmark for crude oil, stood at about $108 a barrel on Thursday afternoon, up from $101.53 on Wednesday.
Prices rose to above $100 a barrel on Wednesday for the first time since July after the U.S. and Iran traded strikes the night before. Brent crude is now just $6 away from topping its highest level since the war began.
The rapid increase in prices comes after weeks of relative calm as the U.S. shifted from military action to an economic pressure campaign that includes a naval blockade of Iran and an ever-increasing sanctions regime.
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