US Pushes Diplomacy as Iran Conflict Threatens Global Oil Flow

On July 22, U.S. Secretary of State Marco Rubio said the United States remains ready to negotiate an end to the Iran crisis, but he doubted Tehran’s commitment. He warned that if Iran is not serious, the United States will act to protect its own and allied interests.

Reuters

The war, which began on February 28 with U.S. and Israeli strikes on Iran, has expanded after the Iran-aligned Houthis announced a naval blockade of Saudi Arabia. The blockade forced three oil tankers carrying Saudi crude for China and India to reverse course in the Red Sea and head for the Suez Canal, disrupting a key alternate route for millions of barrels per day.

Reuters

In response to the widening hostilities, the U.S. military carried out its 11th consecutive night of bombing across Iran. Iran’s semi-official Fars news agency reported explosions in Tehran, while the state-run IRNA agency noted blasts in Chabahar, Konarak and Bushehr, the site of Iran’s sole nuclear power plant. Iran, in turn, struck U.S. military sites in Bahrain, Kuwait and Jordan and hit a tanker in the Strait of Hormuz.

Reuters

President Donald Trump confirmed that 18 U.S. service members have been killed in the war, including four in recent Iranian attacks on U.S. bases in Jordan and Iraq. Trump also threatened to act against the Houthis if they close the Bab el-Mandeb strait and reiterated a pending strike on Iran’s Natanz nuclear facility.

Reuters

• 11 consecutive nights of U.S. airstrikes on Iran.

Reuters

• 18 U.S. service members killed, per the president.

Reuters

• Brent crude traded above $91 a barrel; U.S. gasoline prices topped $4 per gallon.

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• Three Saudi-crude tankers made Red Sea U-turns, opting for the Suez Canal.

Reuters

• “The problem we're having right now is that they're not serious about talks. If they're serious, we're serious. If they're not, then we will do what's necessary to protect our interests, and also the interests of our allies,” — State Marco Rubio

Reuters

• “If we create a precedent in the Middle East where a nation state can decide that they are going to control an international waterway, charge a toll, and if you don't pay them blow up your ships, we have created a very dangerous precedent, which will repeat itself in other parts of the world, including in this region,” — State Marco Rubio

Reuters