Iran Claims Oil Tankers Explode After Hitting Mines in Strait of Hormuz

Iran's Revolutionary Guard claimed on Friday that a supertanker carrying more than 2 million barrels of oil and two other fuel ships exploded after hitting naval mines in the Strait of Hormuz. According to the Guard's navy, the vessels were using an "unauthorized" route and had switched off their navigation signals, ignoring repeated radio warnings. Iran did not identify the ships, their nationalities, the fate of their crews, or who allegedly laid the mines.

The claims could not be independently verified. The United States stated that it has cleared all internationally recognized primary transit routes in the Strait of Hormuz of mines. The incident comes amid heightened tensions in the region, with Saudi Arabia reporting it shot down a drone near Mecca launched by Yemen's Iran-backed Houthi rebels, who denied the claim.

Oil prices surged on Friday to their highest levels since the end of April following the reports. Analysts expect continued volatility in the coming weeks, influenced by Israel's recent elections and the US midterm elections on November 3. Saxo Bank noted that crude is expected to trade in a higher range of $70 to $90 per barrel even after the conflict ends, compared to a pre-war range of $60 to $70.

"Continued kinetic action around the Strait of Hormuz amidst doubts of a viable diplomatic pathway is keeping oil prices elevated in expectation of an escalation of the conflict in coming weeks," said Saul Kavonic, head of energy research at MST Marquee, to Reuters.

The Strait of Hormuz is a vital waterway through which about one-fifth of the world's oil passes. Any disruption there can have significant implications for global energy markets and prices. The incident underscores the fragility of oil supply routes and the potential for geopolitical tensions to impact the global economy.