Revolutionary Guards Say They Stopped Two Tankers in Strait of Hormuz; Oil Rises 2.4%
Key Facts
Iran's Revolutionary Guards said Friday they stopped two oil tankers that tried to cross the Strait of Hormuz using routes they described as unauthorized, a development that heightened concerns over the safety of shipping and oil supplies through the passage. The Associated Press quoted the Guards as saying one tanker was east of the strait and the other to its west. They said the vessels disabled navigation and positioning systems and tried to leave with U.S. military support. The Guards added that the tankers ignored repeated radio warnings, but did not explain how they stopped them. The announcement came alongside separate reports of maritime incidents in the region and a rise in oil prices in Friday trading.
The Guards gave no details about the nature of the operation or any damage to the tankers, while the agency presented the account as their claim. The Associated Press said Tehran is asking ships to contact its authorities and use a northern route close to its coast. Ships seeking to avoid Iran are keeping to the southern side of the strait, according to the agency. The differing routes place vessels transiting the passage in conflicting arrangements in a vital oil-shipping corridor, as the parties try to impose their terms on traffic. The agency gave no details about the tankers' identities or the position of their operators.
In a separate report dated October 29, UKMTO said a company security officer reported that his tanker had been struck by an unidentified projectile as it left the Strait of Hormuz. There were no reports of injuries among the crew or environmental impact, according to the report. It did not link that tanker to the two vessels the Guards said they had stopped. The party responsible for the attack was not immediately clear, according to a Reuters report on the incident. The separate reports highlight the risks facing shipping in the region, without establishing a direct connection between them.
Friday's announcement follows an Iranian account of three tankers that Tehran said struck mines and caught fire while trying to leave the strait via an unauthorized route. The Associated Press reported Thursday that Iran said the incidents occurred in the preceding 24 hours, but said it had been unable to confirm the account. Tasnim news agency said the Guards' navy reported that the three tankers caught fire and were abandoned off the strait's southern coast after striking naval mines. Those details remained attributed to the Iranian account. Repeated reports of mines and tanker incidents add to concerns about safe passage through the corridor.
Supply risks were reflected in the oil market on Friday: Brent futures for December delivery rose $2.74, or 2.4%, to $117.62 a barrel at 1045 GMT, according to Reuters. The contract was on track for a fourth consecutive monthly gain, as traders prepared for the possibility of a U.S.-Iran escalation after the midterm elections. Reuters estimated that Brent was on track to end October up about 14%. An analyst at Saxo Bank said, according to the report, that the oil market was growing more concerned as the election approached. The U.S. Energy Information Administration estimated the September average spot price for Brent at $114 a barrel, up $23 from August, and linked the increase to intensified attacks on oil infrastructure and tankers in the Middle East.
In its estimates for the fourth quarter of 2026, the Energy Information Administration said oil flows from the Middle East would remain constrained, with an expected average production shut-in of 4.5 million barrels per day during the quarter. The agency estimated that global inventories fell by an average of 1.9 million barrels per day in the third quarter and would decline by a further average of 0.7 million barrels per day in the fourth quarter. It linked disruption to maritime transport with higher shipping costs and a risk premium in oil prices, as well as ships taking longer routes to avoid conflict zones, reducing the number of vessels available. It expected prices to remain high until constraints on Middle Eastern oil flows are resolved and inventories are replenished. It also expected flows through the strait and alternative routes to remain volatile.
On the diplomatic front, Iran's official news agency reported that Qatari mediators returned to Iran on Friday for talks with Iranian officials whose identities were not specified, according to the Associated Press. The agency said the delegation was led by Qatar's foreign minister and a senior adviser to the prime minister. Details of the talks' results were not announced. Iran acknowledged on Thursday receiving a message from U.S. Vice President J.D. Vance addressed to Mohsen Rezaei, and said it had not replied or disclosed its contents. U.S. President Donald Trump said the message might concern the provision of humanitarian aid rather than peace talks, while the Associated Press quoted diplomats as saying U.S. officials had asked Middle Eastern countries and regional allies to prepare for the possibility of resuming military action against Iran after the midterm elections the following week.