Iran said missiles that struck one of its oil tankers in the Red Sea probably came from Saudi Arabia, marking the latest escalation in a tit-for-tat conflict between the two Middle Eastern powers that has roiled energy markets. Oil prices jumped. The incident comes weeks after a devastating attack on major Saudi oil facilities that the kingdom blamed on Iran.
- The explosions on the tanker, operated by the National Iranian Oil Company, occurred around 5 a.m. local time damaging two of its main oil tanks, the Islamic Republic News Agency reported.
- Oil prices extended gains above $60 a barrel after the report, which comes amid heightened tensions after drone and missile strikes on a key Saudi oil facility last month briefly cut global supplies by 5%. The explosion is likely an act of terrorism, the Islamic Student's News Agency said.
- "The explosion points to potential geopolitical risks and that has once again surprised the market to the upside,” said Will Sungchil Yun, at HI Investment & Futures.
- China urged restraint in the Gulf area after the incident.