More tankers struck in the Middle East as Iran reiterates conditions for reopening the Strait of Hormuz

• Iran's conditions for reopening the strait include ending U.S. 'acts of aggression,' lifting the naval blockade, releasing Iranian assets, while the U.S. demands Iran dismantle its nuclear weapons program
• Yemen's Iran-aligned Houthis reportedly targeted a Saudi Aramco facility in Riyadh with missiles and drones in retaliation for Saudi attacks, marking escalation on a second front in the conflict
• Brent crude futures closed at $102.25 per barrel and U.S. crude at $91.11, with energy prices rising due to ongoing attacks and inflation concerns, though G7 announced release of diesel and crude stocks to ease consumer burden

Summary

Key Developments:

Two vessels were struck near Oman and Iran over the weekend, with attacks reported Saturday and Sunday in waters around the Strait of Hormuz. One vessel was hit four nautical miles east of Oman, while another sustained engine room damage in the strait itself.

Critical Infrastructure at Stake:

The Strait of Hormuz, through which approximately 20% of global oil supplies flowed before the U.S.-Israel war began on February 28, remains closed. Iran has reiterated it will not reopen the waterway until seven conditions from the June Islamabad Memorandum are met, including ending U.S. "acts of aggression," lifting the naval blockade, ending economic warfare, and releasing Iranian assets. The U.S. demands Iran dismantle its nuclear weapons program.

Saudi Arabia Under Attack:

Yemen's Iran-aligned Houthis reportedly targeted a Saudi Aramco facility in Riyadh with ballistic missiles and drones on Saturday, citing retaliation for Saudi attacks on Yemen. Witnesses reported significant smoke and fire, though Saudi authorities and Aramco have not confirmed the incident.

Market Impact:

Energy prices have risen significantly amid escalating tensions, driving global inflation expectations and pressuring interest rates. Brent crude closed at $102.25 per barrel (down $0.06), while WTI settled at $91.11 (down $1.76) after the G7 announced releases of diesel and crude stocks. Reports of U.S. military deployments, including 2,000 Marines, initially pushed prices higher Thursday.

Outlook:

Analysts view renewed full-scale conflict as inevitable. "It's not a question of if, but when," noted Bader Al-Saif of Al-Saif Consulting, highlighting the fluid and volatile situation facing investors and markets.