Global oil prices increased on Friday following two separate maritime security incidents in the Middle East. The market movement came after Iran’s state media reported that its forces had intervened with commercial vessels in the Strait of Hormuz, and followed reports earlier in the week of a drone attack on ships at an Egyptian port.
The events drew attention to the security of key global energy transit routes. Brent crude, the international benchmark, rose by 2.4% to trade at $89.50 per barrel by the close of trading Friday. West Texas Intermediate (WTI), the U.S. benchmark, saw a similar increase of 2.6%, settling at $84.75 per barrel.
On Friday, Iran’s state-controlled news agency, IRNA, reported that the naval forces of the Islamic Revolutionary Guard Corps (IRGC) took action against two tankers in the Strait of Hormuz. The report stated that the intervention was a response to an alleged attempt by the U.S. Navy to confiscate a tanker carrying Iranian oil in the Gulf of Oman. According to the Iranian account, its forces prevented the seizure and escorted the Iranian tanker away. The report also claimed four other commercial tankers in the vicinity altered their course and turned back following the IRGC’s actions.
In response, the U.S. Navy’s Fifth Fleet, based in Bahrain, issued a statement describing the Iranian claims as “inaccurate and misleading.” A spokesperson for the Fifth Fleet said that U.S. naval assets observed the interaction but did not attempt to seize any vessel. The U.S. statement characterized the IRGC’s actions as “contrary to international law and disruptive to regional security and stability.”
The price fluctuations also followed reports from earlier in the week regarding a drone attack near Egypt’s Mediterranean coast. Egyptian military officials confirmed that an unidentified drone was intercepted near the port of El Arish on Wednesday. Shipping and maritime security sources reported that the incident involved two Egyptian naval vessels. Details on the origin of the drone or the extent of any damage were not publicly released by Egyptian authorities.
The Strait of Hormuz, a waterway separating Iran and Oman, is a critical chokepoint for global oil shipments. According to the U.S. Energy Information Administration, approximately one-fifth of the world’s total oil consumption passes through the strait daily, making its security a significant factor for international energy markets.
Market analysts attributed the day’s price increases to heightened geopolitical risk perceptions among traders. Government officials from several countries have acknowledged they are monitoring the situations in both the Strait of Hormuz and the eastern Mediterranean.
