Oil Prices Rise as Iran Targets US Facilities and Disrupts Hormuz Shipping

Oil prices rose more than 1 percent on Friday following reports that Iran stopped two vessels attempting to exit the Strait of Hormuz. The Iranian Revolutionary Guard Corps stated that the tankers were non compliant and were struck while using an undeclared route. Four other tankers reportedly turned back after Iranian intervention. Shipping data from Kpler showed that two large tankers and two commodities vessels did successfully transit the strait. The UK Maritime Trade Operations also reported that a tanker was hit by a projectile of unknown origin northeast of Lima, Oman, causing damage to the engine room without casualties.

Simultaneously, the Iranian military announced drone strikes targeting US military facilities at Ahmad al-Jaber Air Base in Kuwait, specifically hitting aircraft shelters and communications systems. Kuwait's military reported destroying the drones, though some damage from debris occurred. Iran stated these attacks were responses to US aggression and a strike on a residential home on Qeshm Island. US Central Command previously stated that US forces are blockading Iranian oil exports and have completed a wave of strikes.

In diplomatic and economic developments, the US Treasury imposed sanctions on six individuals and companies linked to Mahan Air for supporting the IRGC. Meanwhile, Egypt confirmed that a drone strike caused fires on two vessels at the port of Damietta. Iran denied involvement in the Egyptian strike, with Foreign Minister Abbas Araqchi calling Egypt an important friend.

President Donald Trump stated that the war is going well but noted he is losing faith in Iran. He mentioned that a deal could still be reached through talks involving Secretary of State Marco Rubio and other envoys. However, reports from CBS News and The Wall Street Journal suggest that the US and Israel may be preparing a large attack on Iranian energy infrastructure this weekend.