Brent futures have opened the week near $100/bbl as tensions in the Middle East compounded over the weekend.

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The US Central Command (CENTCOM) struck three Iran-linked crude oil tankers in the Strait of Hormuz on Saturday, permanently disabling all three vessels, it said on social media platform X.

The attack came in retaliation to Iranian forces launching ballistic missiles toward two US warships patrolling regional waters, CENTCOM said.

The US Navy disabled the Islamic Revolutionary Guard Corps-affiliated (IRGC) vessels, M/T Downy and M/T Stark 1, off the coast of Kharg Island and near Jask, respectively, CENTCOM said.

A third, unladen crude oil carrier M/T Kylo, was “completely destroyed” in the Gulf of Oman, after the US CENTCOM struck the vessel in multiple locations, it said on X, sharing a video footage of thick smoke rising from the vessel.

“The three Iranian crude oil tankers are part of a multibillion-dollar shadow network that funds the IRGC and its regional proxies,” CENTCOM added.

Following the strikes, only 12 vessels attempted to transit the strait on Sunday, seven inbound and five outbound, market intelligence provider Windward reported.

As of yesterday, US forces had redirected 92 commercial vessels, disabled three and boarded two to prevent ships from entering or departing Iranian ports, CENTCOM said.

Tehran claims to work around routes to bypass US blockade

Iran is pursuing various workaround routes to bypass the US naval blockade of its ports, local media reported citing Iranian oil minister Mohsen Paknejad.

Following the breakdown of peace negotiations between Washington and Tehran, US President Donald Trump reimposed the naval blockade in mid-July, in a bid to drive Iran’s oil exports down to zero.

Last month, Tehran managed to export about 260,000 b/d of crude oil from its ports, marking a sharp 80% drop compared to 1.7 million b/d loaded during the same time a year ago, CNBC reported citing data from market intelligence firm Kpler.

By Aparupa Mazumder

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