The United States woke up today hearing news of an ‘attack’ on two Asian oil tankers. This incident has caused the United States to blame Iran. Although Iran claims its innocence, it has played a role in escalating tension between the two countries in the Gulf of Oman.
The crude oil prices rallied today and rose over 3% today. The fear of a potential shortage if the Gulf of Oman was to be shut down, was the key component. In addition, this incident was just an addition of tension added in the region. Following President Trumps withdraw from the Iranian Nuclear Program deal, the two countries have not seen eye to eye. This ‘attack’ helped the crude oil prices rise today, but at what cost in the future? That is yet to be determined.