Global energy concerns mount as Iran hits ships

Global energy concerns mount as Iran hits ships

Iran attacked commercial ships across the Persian Gulf and targeted Dubai International Airport in the UAE on Wednesday, escalating a campaign of squeezing the oil-rich region as global energy concerns mounted and American and Israeli airstrikes pounded the Islamic Republic.

Authorities were searching for three crew members from India-bound Thai cargo ship Mayuree Naree, which was set ablaze off the Oman coast in the Strait of Hormuz after a projectile strike. The Omani Navy rescued 20 from the vessel, according to Thailand’s Marine Department.

Taking note of the attack on the ship which was on its way to Kandla in Gujarat, the External Affairs Ministry said it “deplores the fact that commercial shipping is being made a target of military attacks”.

“Precious lives, including of Indian citizens, have already been lost in multiple such attacks in the earlier phase of this conflict and the intensity and lethality of the attacks only seems to be increasing”, the Ministry said in a statement, adding that targeting commercial shipping and endangering innocent civilian crew members must be avoided.

Four injured

Four people were wounded in Dubai when two Iranian drones hit near the airport, but flights continued, the Dubai Media Office said.

The U.K. Maritime Trade Operations centre, run by the British military, reported an attack on a container ship off the UAE, saying the “extent of the damage is currently unknown but under investigation by the crew.”

Separately, Kuwait said its defences downed eight drones and Saudi Arabia said it intercepted five heading toward its Shaybah oil field.

Iran’s joint military command said it would target financial institutions in West Asia after the state-run IRNA news agency reported that the state-owned Bank Sepah in Tehran, sanctioned by the U.S. over funding armed forces, came under attack early on Wednesday, killing staffers. That would put at risk particularly Dubai which is home to many international financial institutions, as well as Saudi Arabia and the island kingdom of Bahrain.

The ship attacks follow intense American airstrikes targeting Iranian Navy assets and the port city of Bandar Abbas on Tuesday.

Oil prices remained well below Monday’s peaks but the price of Brent crude, the international standard, was still up some 20% on Wednesday from when the war began, and consumers around the world were already feeling the consequences. In an attempt to manage price jumps, the International Energy Agency said its member countries would unlock 400 million barrels of oil from their reserves, the biggest such release ever.

Ripple effect

Iran has effectively stopped cargo traffic in the narrow strait through which about a fifth of all oil is shipped.

It has also targeted oil fields and refineries in Gulf Arab nations, aiming at generating enough global economic pain to pressure the U.S. and Israel to end their strikes.

Witnesses reported continuous airstrikes hitting Tehran after Israel said it had renewed its attacks. Explosions were also heard in Beirut and in southern Lebanon after Israel said it was hitting targets connected to Iran-backed Hezbollah militants.

The attacks in Lebanon set a building ablaze in central Beirut’s densely populated Aicha Bakkar area, engulfing the top two floors. Lebanon’s Health Ministry said four people were wounded.

Israel also warned of Iranian attacks, and sirens rang out in Tel Aviv and elsewhere, but there were no immediate reports of casualties.

Saudi Arabia said it had destroyed six ballistic missiles launched toward Prince Sultan Air Base, a major U.S.- and Saudi-operated facility, and intercepted two drones over the eastern city of Hafar al-Batin.

The U.S. military said on Tuesday it had destroyed 16 Iranian minelayers near the Strait of Hormuz, though U.S. President Donald Trump said in social media posts that there were no reports yet of Iran mining the passage.

If the strait is mined, it could take at least weeks to clean it up once the conflict is over.