Trump Says Washington Does Not Need a Deal With Iran as Hormuz Tensions Escalate
Key Facts
U.S. President Donald Trump said Thursday that the United States "does not need a deal with Iran," adding that "those days are long gone," as reports emerged of new oil tanker incidents in the Strait of Hormuz. Trump said in his post that he had directed Vice President JD Vance to turn his attention to his anti-fraud campaign. On the same day, Iran's armed forces said four tankers had caught fire in the strait. The statements and reported incidents come as shipping through the strategic waterway continues to face security risks. In markets, Brent crude rose during Thursday's session, while U.S. stocks fell at the close.
Niu Arab detailed the Iranian account, saying the Islamic Revolutionary Guard Corps' navy had reported two giant tankers disabled after two explosions on Wednesday, carrying a combined more than 4 million barrels of oil. The report added that Iran's military said two other tankers caught fire on Thursday after striking a sea mine east of the strait. In a separate account, Reuters said the IRGC navy attributed the two giant tankers' breakdowns to explosions after they ignored warnings about a route Iran described as unauthorized. Reuters said it could not immediately verify the Iranian account. UKMTO reported that an unidentified projectile struck a vessel northwest of Ras Al Khaimah on Wednesday as it was leaving the strait, causing a fire in the engine room; the crew was evacuated while firefighting efforts were under way.
AP data showed Brent rose 3.3% to $95.82 a barrel on Thursday after Trump's remarks pushed prices higher. The yield on the 10-year U.S. Treasury note also rose to 5.12% from 4.98% late Tuesday, amid inflation concerns amplified by high oil prices. In equities, the S&P 500 closed down 26.98 points at 7,592.40, and the Dow Jones fell 189.40 points to 52,297.09. The Nasdaq dropped 100.10 points to 25,366.09. Brent futures had closed up 1.39% at $92.76 a barrel on Wednesday, Reuters reported, after remarks by an Iranian security official that enriched nuclear material would not be removed raised supply concerns. Since the start of November, Brent and U.S. West Texas Intermediate crude had fallen about 21% and 17%, respectively, through November 11, as hopes of ending the war grew.
In shipping, AP said oil shipments through the Strait of Hormuz had recovered to near prewar levels and international tankers were currently relying on U.S. Navy escorts to transit the strait. Reuters, however, said attacks continued despite the recovery in traffic and expectations of de-escalation reflected in falling oil prices. According to data from the Washington Institute for Near East Policy cited by Reuters, at least 10 vessels were struck during the first 10 days of November, following 37 attacks in October, the highest monthly total since the conflict began in late February. In another incident reported by AP citing UKMTO, a tanker was struck by a projectile in the Arabian Gulf on Tuesday, and several people were taken ashore for medical assistance, while the rest of the crew were safe. The incidents show that maritime risks persist alongside the return of shipping to near-normal levels.
Trump's rejection of a deal coincided with a report by AP, citing the Wall Street Journal, that Vance had been considering taking part in a new round of direct talks with a senior Iranian official; the report did not confirm that a meeting took place, and the vice president's office did not respond to a request for comment. Vance had linked Republican election losses to the war's economic fallout, writing that anyone who believes losing the Senate for six years was worth the cost of the war should say so plainly. Earlier in the week, Trump said the war was "effectively over militarily" and that mediation efforts led by Qatar were making progress. Secretary of State Marco Rubio also asked his G7 counterparts to step up assistance to protect ships from Iranian attacks, but acknowledged that no progress had been made on the issue. Trump said in a radio interview Thursday that he was prepared to resume strikes if necessary: "If something doesn't go right, I won't hesitate."