IRGC says two more tankers halted by mines in Strait of Hormuz

The latest reports out of the region focus on more vessels being struck in the Strait of Hormuz. Tehran is signaling that any further US escalation will prompt a response aimed at the most sensitive target.

Iran's Islamic Revolutionary Guard Corps (IRGC) has once more claimed that two additional oil tankers were stopped after hitting mines in the waterway. The Guard's statement said:

"The IRGC Navy had previously warned of the dangers of passing through the mined channel. Additional punitive measures have also been prepared for shipping companies that, instead of using the authorised route, are deceived by the United States and place their vessels at the enemy’s disposal. These measures will be implemented soon."

There is little sign that conditions in the strait will improve any time soon.

The longer the standoff drags on, the worse the impact on energy markets and the greater the disruption to supply chains. That in turn weighs on the inflation outlook and has again stirred up markets over the past week. Bond yields are pushing higher across the globe in what appears to be a significant change in the market landscape.

In oil markets today, Brent crude is holding near $94.85, while WTI is trading at $90.17. Both are roughly flat on the day but are up sharply on the week, with Brent gaining 7% and WTI 8% so far this week.