Return to site

Recent Attacks on The Strait of Hormuz Threaten Global Oil Supply

· Oil,Economics

Recent Attacks on The Strait of Hormuz Threaten Global Oil Supply

The Strait of Hormuz is at most only 30 miles wide. It connects the Persian Gulf to the Gulf of Oman, and it is a vital waterway; it aids transportation from the Middle East to the rest of the world. The Middle East possesses about 82 percent of the worlds crude oil; thus, it ships over one-third of the world’s crude oil to the world, especially the United States.

On the morning of Thursday, June 13, two large oil tankers were attacked in the Strait of Hormuz. One boat by the name of Front Altair, with a gross tonnage of 109,894 metric tons, and another by the name of Kokuka Courageous, with a gross capacity of around 19,349 metric tons. The torpedoes forced both ships evacuated the crew members and caused extensive damage to the ships.

After the attack, oil prices increased by 4 percent, which resulted in rising fears of trade disruptions between the United States and countries, more specifically Iran, near the Strait of Hormuz. Last month, similar attacks occurred in the Gulf of Oman; the United States believed Iran was responsible. As a result, the United States had increased its military presence in the Gulf.

Iran has denied any involvement with the attacks, and up until this point, the United States and the Trump administration has been attempting to mitigate the idea of increasing military conflict with Iran. Nonetheless, these attacks have increased tensions in the standoff between the United States and Iran, and if they continue, it could escalate into a military conflict between the two countries.

Written by Matt Durborow, Edited by James Mueller & Alexander Fleiss

All Posts
×

Almost done…

We just sent you an email. Please click the link in the email to confirm your subscription!

OKSubscriptions powered by Strikingly