Key Takeaways
- The IRGC targeted a Thai-flagged vessel in the Strait of Hormuz after it allegedly ignored warnings, causing a 13% weekly surge in oil prices.
- Shipping traffic has collapsed to a three-week low, with only three commodity vessels transiting the strategic waterway on Thursday.
- The White House confirmed that Chinese President Xi Jinping’s state visit remains on track despite the escalating military conflict in the Middle East.
- U.S. Central Command (CENTCOM) has conducted six consecutive nights of strikes against Iranian infrastructure, including bridges and maritime control towers.
Iran’s semi-official Tasnim News Agency reported on Friday that the Islamic Revolutionary Guard Corps (IRGC) targeted a "Thai-flagged ship" in the Strait of Hormuz. According to an informed source, the vessel was struck after it reportedly ignored multiple warnings and attempted to transit the strategic chokepoint without the IRGC's permission. This latest incident marks a significant escalation in the ongoing maritime crisis that has effectively blocked one of the world's most vital energy corridors.
The attack has sent shockwaves through global energy markets, with Brent Crude (BZ=F) rising to $85.76 a barrel and West Texas Intermediate (CL=F) climbing to $80.70. Analysts at Bank of America (BAC) have warned that prices could exceed $100 per barrel if the conflict persists, as shipping traffic through the strait has plummeted by over 90% from pre-war levels. The International Maritime Organization (IMO) previously reported that thousands of mariners remain stranded in the region due to the continued instability.
In Washington, White House Press Secretary Karoline Leavitt confirmed to NBC News that the planned state visit of Chinese President Xi Jinping remains on schedule. Despite the U.S. military being heavily engaged in "Operation Epic Fury" against Iranian targets, the administration is maintaining its diplomatic calendar with Beijing. Leavitt emphasized that while Middle East operations are a top priority, the "leader-to-leader" talks with China are essential for global stability.
The military situation continues to deteriorate as CENTCOM reported the destruction of a maritime surveillance tower at the Chah Bahar Shahid Kalantari Port. This strike was part of a broader campaign to degrade the IRGC’s ability to track and target commercial vessels. In retaliation, Iran has reportedly launched missile and drone strikes against U.S.-allied infrastructure in Kuwait, Qatar, and Oman, including a hit on a desalination plant in Kuwait’s Al Ahmadi Governorate.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.