The U.S. military said Sunday that an Iranian-linked oil tanker sank in the Gulf of Oman after American forces struck three crude carriers in retaliation for Iranian missile attacks on U.S. Navy warships, escalating a confrontation centered on one of the world's most important energy corridors.
U.S. Central Command said the M/T Kylo, also known as Noxen, went down after being struck Saturday. CENTCOM had said the vessel was unladen and that its crew was directed to abandon ship before American forces hit it at multiple points. Video released by the command showed the damaged tanker listing and sinking.
The strikes followed what CENTCOM described as multiple ballistic missile attacks by Iran's Islamic Revolutionary Guard Corps against a U.S. aircraft carrier and a guided-missile destroyer operating in regional waters. The two warships evaded the attacks and no U.S. personnel were hurt, according to the military.
U.S. Targets Iran's Oil Shipping Network
American forces also permanently disabled the M/T Downy off Kharg Island and M/T Stark 1 near Jask, CENTCOM said. The command described all three tankers as part of a multibillion-dollar shipping network that helps finance the IRGC and its regional partners.
The location of the Downy strike adds to the market significance of the escalation. Kharg Island has historically handled about 90% of Iran's crude exports, although Iranian oil shipments have already been disrupted by the continuing conflict and U.S. blockade measures.
Iran responded by saying its forces targeted three tankers using what Tehran called unauthorized routes through the Strait of Hormuz, as well as three U.S.-linked vessels elsewhere. Those claims were not independently confirmed.
The confrontation continued Sunday, when Iran said it struck an unmanned U.S. vessel attempting to enter the Strait of Hormuz. The United States had not confirmed that claim as of the latest reports.
Strait of Hormuz Keeps Oil Markets on Alert
The tanker strikes occurred after oil markets had already closed for the weekend, meaning their full impact on Brent and West Texas Intermediate prices will not be clear until futures trading resumes.
Brent crude settled Friday at $96.28 a barrel, up 7.6% for the week, while WTI finished at $91.48, gaining nearly 10% over the same period. Those increases came before Saturday's tanker attacks and Sunday's confirmation that Kylo had sunk.
Shipping through the Strait of Hormuz also remains sharply reduced. Preliminary Kpler data showed only four commodity vessels crossed the waterway Thursday, down from nine Wednesday and well below a 10-day average of about 15. The figures exclude vessels traveling with tracking transponders turned off.
Before the Iran conflict began in February, roughly 125 large commercial vessels crossed the strait each day. The route has long been critical to global crude oil and liquefied natural gas flows, making military activity near Kharg Island, Jask and the Gulf of Oman particularly sensitive for energy markets.
The immediate question for markets is whether the latest U.S.-Iran exchange further restricts tanker traffic or threatens regional oil exports. A prolonged disruption could add pressure to crude prices and inflation expectations, while any easing in hostilities or improvement in shipping flows could limit the geopolitical risk premium when markets reopen.
