Oil Prices Surge After Two Tankers Burn Off the Coast of Iran

Oil prices surged as news emerged of burning oil tankers in the Gulf of Oman, allegedly attacked in the early hours of Thursday morning.

The event came in the midst of a visit to Iran by Japan’s Prime Minister, Shinzo Abe, who was apparently there to mediate the nuclear deal.

Iranian Foreign Minister Javad Zarif suggested the attacks were motivated by the visit from Abe, tweeting that “suspicious doesn’t begin to describe what likely transpired this morning” as the leaders of Japan and Iran met “for extensive and friendly talks.”

Japan’s trade ministry said the two vessels had “Japan-related cargo.”

Oil prices jumped after the incident, rebounding from their lowest close in about five months.

A third of the world’s oil traded by sea passes through the Strait of Hormuz, near the Gulf of Oman.

Similarities have been drawn between this incident and events a month ago, when four ships were targeted.

 

 

Photo from: Islamic Republic of Iran Broadcasting (IRIB)

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