🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Iran chafes at U.S. blame for tanker attacks

Published 14/06/2019, 11:10
© Reuters. A picture released by U.S. Central Command shows damage from an explosion (L) and a likely limpet mine, on the hull of the civilian vessel M/V Kokuka Courageous in the Gulf of Oman
LCO
-

By Parisa Hafezi

DUBAI (Reuters) - Iran rebuffed blame on Friday for attacks on two oil tankers in the Gulf of Oman and affirmed its responsibility for security in the Strait of Hormuz where almost a fifth of the world's oil passes, state radio reported.

Washington pointed the finger at Tehran for Thursday's attacks that drove up oil prices and heightened concern about a new U.S.-Iranian confrontation.

"Obviously, accusing Iran for such a suspicious and unfortunate incident is the simplest and the most convenient way for (U.S. Secretary of State Mike) Pompeo and other U.S. officials. These accusations are alarming, "Foreign Ministry spokesman Abbas Mousavi as saying by Iran's state Radio.

"We are responsible for ensuring the security of the Strait and we have rescued the crew of those attacked tankers in the shortest possible time."

It was not immediately clear what caused the explosions that forced the crews to abandon ship and leave both the Norwegian-owned Front Altair and Japanese-owned Kokuka Courageous adrift in waters between Gulf Arab states and Iran.

Iran's Foreign Minister Mohammad Javad Zarif rejected the U.S. accusations as part of "sabotage diplomacy".

The blasts, south of the Strait of Hormuz, followed last month's attacks on vessels off the Fujairah emirate, one of the world's largest bunkering hubs.

About 17.2 million barrels per day (bpd) of oil passes through the Strait. Consumption was about 100 million bpd in 2017, data from analytics firm Vortexa showed.

Brent crude futures rose 0.6% to $61.69 per barrel in Asian trade on Friday, having gained 2.2% the previous day.

One source said the blast on the Front Altair may have been caused by a magnetic mine. The firm that chartered the Kokuka Courageous tanker said it was hit by a suspected torpedo, but a person with knowledge of the matter said that was not the case.

MINE IMAGES

The U.S. military released a video late on Thursday that it said showed Iran's Revolutionary Guard (IRGC) removing an unexploded mine from the side of the Japanese-owned oil tanker.

IRGC commanders have said Iran would block all exports through the Strait if countries heed U.S. calls to stop buying its oil. In April, Washington designated the IRGC a foreign terrorist organisation.

The U.S. military's Central Command also released photographs showing the apparent mine, which attaches to the side of a ship magnetically, before it was removed later in the day.

Comprising an estimated 125,000-strong military with navy, army and air units, the Guards control Iran's missile programmes. The Guards' overseas Quds forces have fought Iran's proxy wars in the region for decades from Yemen to Syria.

Relations between Tehran and Washington took a turn for the worse last year, when the U.S. President Donald Trump pulled out of a 2015 nuclear deal between Iran and six world powers, and reimposed sanctions that were lifted under the deal in return for Tehran curbing its nuclear work.

Without mentioning the attacks, Iranian President Hassan Rouhani told leaders of a China-led security bloc in the Kyrgyz capital Bishkek that U.S. withdrawal from the deal posed a serious threat to stability in the Middle East.

Tensions have spiked further since Trump acted last month to force Iran's oil customers to slash their imports to zero or face draconian U.S. financial sanctions.

Iran's oil exports, its economic lifeblood, have dropped to about 400,000 bpd in May from 2.5 million bpd in April last year.

© Reuters. A picture released by U.S. Central Command shows damage from an explosion (L) and a likely limpet mine, on the hull of the civilian vessel M/V Kokuka Courageous in the Gulf of Oman

Chinese President Xi Jinping told Rouhani on Friday that Beijing, a signatory of the nuclear pact, will promote steady development of ties with Iran no matter how the situation changes, the official Xinhua news agency reported.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.