More tankers hit in the Middle East as Iran repeats Strait of Hormuz conditions

• Iran demands the U.S. halt 'acts of aggression,' end its naval blockade and economic warfare, and release Iranian assets before reopening the Strait of Hormuz, while the U.S. requires Iran dismantle its nuclear weapons program
• Saudi Arabia's Aramco facilities in Riyadh were reportedly attacked by Yemen's Iran-aligned Houthis using ballistic missiles and drones, marking an escalation in what has become a second front in the Iran war
• Brent crude oil prices reached $102.25 per barrel while WTI crude settled at $91.11, driven higher by ongoing attacks and the U.S. deploying an aircraft carrier and 2,000 Marines to the region, raising global inflation concerns

Summary

Key Developments:

At least two vessels were struck over the weekend near Oman and Iran, with one hit Saturday four nautical miles east of Oman and another damaged in its engine room Sunday in the Strait of Hormuz. Iran reiterated that the strait will remain closed until its seven conditions from the Islamabad Memorandum are met, including cessation of U.S. "acts of aggression," ending naval blockades, and release of Iranian assets.

Critical Context:

The Strait of Hormuz previously handled approximately one-fifth of global oil supplies before a U.S. and Israel-led war commenced on February 28. Attacks on shipping have been occurring regularly for weeks. An interim deal signed in June by U.S. and Iranian presidents briefly paused hostilities, but the U.S. demands Iran dismantle its nuclear weapons program.

Saudi Arabia Attack:

Yemen's Iran-aligned Houthis claimed responsibility for targeting Saudi Aramco facilities in Riyadh using ballistic missiles and drones, reportedly causing significant fire and smoke. This represents an escalation on a second front in the Iran conflict. Saudi authorities and Aramco have not commented.

Market Impact:

Energy prices have risen due to ongoing attacks and escalation fears, driving inflation expectations globally and pressuring interest rates. Brent crude closed at $102.25 per barrel (down $0.06), while U.S. crude settled at $91.11 (down $1.76) after G7 nations announced diesel and crude stock releases. Reports of additional U.S. military deployments to the region initially pushed prices higher Thursday.

Outlook:

Analysts expect full-scale fighting to resume, with one expert stating it's "not a question of if, but when."