Fire Seen Near Entrance to Strait of Hormuz Puts Ships on Alert
A blaze that's been spotted in waters off the United Arab Emirates and near the entrance to the Strait of Hormuz is not security related, according to a maritime risk management firm active in the area.
'We can confirm that the incident was not security related,' according to Ambrey in an emailed response to questions on the matter. The company had issued a notice to shippers in the early hours of Tuesday, highlighting an incident 22 nautical miles east of Khor Fakkan under the categorization of 'war risk/sighting'.
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22 minutes ago
- Yahoo
What is the Strait of Hormuz and why is it so significant?
While there have been no major disruptions to the global oil supply so far, the attacks on Iran – by Israel and then the US – have rattled investors, sending oil futures soaring by around 10%, among fears Iran could retaliate by disrupting shipping in the Strait of Hormuz. From the perspective of the global economy, there are few places as strategically important. The waterway, located between the Persian Gulf and the Gulf of Oman, is only 21 miles wide at its narrowest point. It's the only way to ship crude from the oil-rich Persian Gulf to the rest of the world. Iran controls its northern side. About 20 million barrels of oil, about one-fifth of daily global production, flow through the strait every day, according to the US Energy Information Administration (EIA), which called the channel a 'critical oil chokepoint.' On Sunday evening, following US airstrikes on three of Iran's nuclear facilities, Brent crude, the global benchmark, briefly surged above $80 per barrel, according to Refinitiv data, the first time that's happened since January. Before the conflict, prices had largely hovered between $60 and $75 a barrel since August 2024. Brent last traded at $78.2 per barrel, while WTI, the US benchmark, was at $75.06. Whether oil prices will climb further now depends on Iran's response. Rob Thummel, senior portfolio manager at energy investment firm Tortoise Capital, told CNN that a potential disruption to the Iran-controlled sea route would cause oil prices to surge toward $100 per barrel. A functioning Strait of Hormuz is 'absolutely essential' to the health of the global economy, he said. A prominent adviser to Iran's supreme leader, Ayatollah Ali Khamenei, has already called for the closure of the Strait. 'Following America's attack on the Fordow nuclear installation, it is now our turn,' warned Hossein Shariatmadari, the editor-in-chief of the hardline Kayhan newspaper, a well-known conservative voice who has previously identified himself as a 'representative' for Khamenei. Geographic leverage over global shipping gives Iran the 'capacity to cause a shock in oil markets, drive up oil prices, drive inflation, collapse Trump's economic agenda,' Mohammad Ali Shabani, an Iran expert and editor of the Amwaj news outlet, told CNN. When it comes to moving oil, the Strait is actually much narrower than its 21-mile official width. The navigable shipping lanes for massive supertankers are only about two miles wide in each direction, requiring vessels to pass through both Iranian and Omani territorial waters. But Vandana Hari, founder and CEO of Vanda Insights, which tracks energy markets, sees Iran's blocking of the Strait as a 'remote tail risk.' The presence of a beefed-up US naval fleet in the region is both a deterrent and a response tool, she said. 'Iran has a lot to lose and very little, if anything, to gain by attempting to close the Strait,' Hari said. 'Iran cannot afford to turn its oil-producing neighbors, who have been neutral or even sympathetic towards the Islamic Republic as it faced Israeli and US attacks, into enemies, any more than trigger the ire of its main crude market, China.' A closure of the Strait would be particularly detrimental to China and other Asian economies which rely on the crude oil and natural gas shipped through the waterway. The EIA estimates that 84% of the crude oil and 83% of the liquefied natural gas that moved through the Strait of Hormuz last year went to Asian markets. China, the largest buyer of Iranian oil, sourced 5.4 million barrels per day through the Strait of Hormuz in the first quarter this year, while India and South Korea imported 2.1 million and 1.7 million barrels per day, respectively, according to the EIA's estimates. In comparison, the US and Europe imported just 400,000 and 500,000 barrels per day, respectively, in the same period, according to the EIA. On Sunday, India's Minister for Petroleum and Natural Gas Hardeep Singh Puri sought to reassure jittery investors on X that the country has 'diversified' its oil supplies in the past few years. On Sunday, India's Minister for Petroleum and Natural Gas Hardeep Singh Puri said on X that the country has 'diversified' its oil supplies in the past few years. 'A large volume of our supplies do not come through the Strait of Hormuz now. Our Oil Marketing Companies have supplies of several weeks and continue to receive energy supplies from several routes,' he said. 'We will take all necessary steps to ensure stability of supplies of fuel to our citizens.' CNN's John Towfighi, Nadeen Ebrahim, and Rhea Mogul contributed reporting.
Yahoo
an hour ago
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Pacific Basin Avoiding Arabian Sea on Mideast Crisis
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Yahoo
an hour ago
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Oil up, but stocks look to slide after U.S. attacks on Iran
Oil up, but stocks look to slide after U.S. attacks on Iran originally appeared on TheStreet. The U.S. attack on Iranian nuclear facilities on Saturday changes the focus of what's ahead for the U.S. economy in the last full week of June. Because everyone is waiting to see what Iran will do, other than fire missiles on Israel. That's what happened late Saturday. 💵💰💰💵 The three biggest questions a day later: How will energy and stock markets react? Does Iran still have enough enriched uranium to make and deploy a small nuclear weapon? Will Iran move to block the ships from passing from the Persian Gulf through the Strait of Hormuz into global shipping lanes? Outside geopolitics, economic events coming up include Federal Reserve Chairman Jerome Powell's testimony before Congress on Tuesday and an important inflation nuclear question is on the table because U.S. officials weren't sure Sunday if the attacks on facilities at Fordow, Natanz and Isfahan actually destroyed nuclear materials. Vice President J.D. Vance, in fact, suggested that Iran's nuclear stock pile is still intact. If that's the case, it's possible Iran could assemble a first-generation weapon. That would be as powerful as the bombs dropped on Hiroshima and Nagasaki in 1945, Robert Pape of the Chicago Project on Security and Threats told MSNBC's Alex Witt on Sunday. Not having this awful idea become reality depends on cooler heads prevailing. A key issue: If Iran is willing to discuss destroying or otherwise ceding control its nuclear development efforts. The Trump Administration is threatening more attacks if Iran rejects the demand. Blocking the Strait of Hormuz, through which 25% of the world's crude oil passes — headed mostly to China, India and Asia — will send global oil prices surging and, ultimately, will boost gasoline prices in the United States and elsewhere. Stocks and bonds also would slump. Crude oil futures in New York opened up nearly $3 a barrel, then fell back quickly. At 7:30 p.m. EDT, crude was was up $2.12 to $75.99. Brent crude, the global benchmark, jumped to as high as $81.40, then fell back to $79.20 per barrel, up $2.19 Crude oil settled at $73.84 a barrel on Friday, up 34 cents. or 1.2%, from Thursday and up 21.5% so far in June. AAA's daily report on gasoline prices put the U.S. average at $3.218 a gallon, down slightly from Saturday's $3.129. Stock index futures were lower in early trading Sunday with S&P 500 futures off 28 points to 5,990. Futures based on the Dow Jones Industrial Average were down just 184 points to 42,333. Nasdaq-100 futures had fallen 137 points to 21,710. Stocks overall were flat last week even as global tensions heated up. Some defense-oriented stocks slipped on Friday. Palantir Technologies () was off 2% to $137.30. Lockheed Martin () , however, was up 0.4% to $470.56. Federal Reserve Chairman Jerome Powell, who is always verbally battered by President Trump, will testify before the Congress twice this week. The questions almost certainly focus on the Iran situation and its impact on the economy. He will also have to explain why the Fed is so stubborn about NOT cutting its key federal funds rate. The Fed decided last week to leave its federal funds rate at 4.25% to 4.5%. One Fed governor, Christopher Waller, who voted in support of holding rates steady, thinks a rate cut could come in July. Mary Daly, president of the Federal Reserve Bank of San Francisco, thinks the Fed will have better information by September. The federal funds rate mostly affects short-term rates. Bond yields influence rates on, say, home mortgages and auto loans. The 30-year mortgage rate was just under 7% on Friday. Powell's first appearance is before the House Financial Services Committee on Tuesday and the Senate Banking Committee on Wednesday. More Economic Analysis: Federal Reserve prepares strong message on long-term interest rates Massive city workers union approves strike Analyst makes bold call on stocks, bonds, and gold The most important economic report this coming week is the Personal Consumption Expenditures Index (PCE), due Friday from the U.S. Bureau of Economic Analysis. This is the Federal Reserve's preferred inflation rate. The index for May is expected to show a 2.3% year-over-year index. The core index, stripping out food and energy, is expected to rise 2.6%, up slightly from April. The inflation rate is still the lowest since March 2021, Barrons says. Four reports come this week that will help clarify the condition of the housing market. Existing homes sales for May, due Monday from the National Association of Realtors. Most estimates are around 4.1 million units on a seasonally-adjusted annual basis, up From April's 4 million rate. S&P Case-Shiller Home Price Index, due Tuesday from Standard & Poor's. New-home sales, due Wednesday from the Commerce Department. Pending home sales, due Thursday from the National Association of Home Builders. S&P Global reports its flash purchasing manager index reports for June. These measure what manufacturing and services companies are actually buying. The Conference Board comes out with its monthly Consumer Confidence Index report for June Tuesday morning It may show a slight gain because the data were collected as stocks were rallying after April's stock-market slump. The University of Michigan offers its revised Consumer Sentiment Index report on Friday. Its early version suggested consumers were a touch less worried and cited the market up, but stocks look to slide after U.S. attacks on Iran first appeared on TheStreet on Jun 23, 2025 This story was originally reported by TheStreet on Jun 23, 2025, where it first appeared. Sign in to access your portfolio
