Iran Rejects Hormuz Control Deal; Strikes, Tanker Attacks Spike Risk

Iran has rejected a proposal from Oman to evenly share control of the shipping lanes in the Strait of Hormuz, a critical oil and LNG chokepoint, according to a senior Iranian official who spoke to Reuters. The official, cited by OilPrice.com, stated that Tehran demands control over all inbound traffic into the Persian Gulf and part of the outbound lanes, dismissing the Omani plan as an "unrealistic" proposal pressured by the U.S. and Saudi Arabia.

The rejection comes amid renewed military strikes in the region. Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed on Wednesday it struck three oil tankers in the Strait of Hormuz, forcing them to stop for using an "unsafe and illegal route," according to OilPrice.com. The IRGC Navy asserted it maintains full control over the waterway, warning that U.S. interventions "will not go unanswered."

These developments have immediately impacted oil markets, sending prices surging again in Asian trade on Wednesday, as reported by Rigzone. The escalating risk to tanker traffic through the Strait, a passage for a substantial portion of the world's seaborne oil, provides fundamental support for crude benchmarks like West Texas Intermediate (WTI), to which Bakken crude is closely linked.

Despite the heightened threat, some regional exporters continue shipments. The UAE's ADNOC is still exporting liquefied natural gas, with a tanker successfully exiting the Strait of Hormuz earlier today after reportedly turning off location devices to avoid detection, OilPrice.com reported. ADNOC was also loading another LNG carrier at its Das Island facility late last week, highlighting continued demand for Gulf energy commodities even as risks mount.

The firm is making significant long-term investments to capitalize on global LNG demand, having recently placed a $900 million order for four newbuild LNG carriers. Another eight carriers, representing a $2.5 billion investment, are under construction and scheduled for delivery from 2028, according to OilPrice.com.

For Bakken operators, the sustained geopolitical premium in oil prices, driven by threats to Middle Eastern supply routes, improves the economic outlook for wellhead revenues. However, the situation also underscores the volatility inherent in global markets, where physical supply disruptions or the threat thereof can cause rapid price swings. The attacks and Iran's hardline stance on controlling the Strait of Hormuz directly contribute to the "risk premium" currently buoying crude.