An oil tanker carrying 750,000 barrels of crude exploded in the Strait of Hormuz after striking a sea mine, pushing Brent crude past $105 per barrel. Meanwhile, the White House faced domestic legal pressure over its Russian fuel agreement, and US envoys postponed their diplomatic mission to Moscow.
Global market
An oil tanker transporting 750,000 barrels of crude oil caught fire in the Strait of Hormuz after striking a naval mine, the Islamic Revolutionary Guard Corps reported, driving Brent crude oil prices above $105 per barrel before settling below $103.6. In Washington, a bipartisan group of six US senators accused US President Donald Trump of violating federal law by negotiating Russian diesel imports without consulting Congress. In response, US Treasury Secretary Scott Bessent defended the deal on Fox News, characterizing European criticism as hypocritical while global VLCC spot earnings climbed to $805,000 per day.
Russia & CIS
Freight rates for tankers shipping Russian crude oil to India rose by an average of $8 per barrel, while Suezmax rates increased for a 12th consecutive week amid severe vessel shortages. On diplomatic channels, US special envoys Steve Witkoff and Jared Kushner postponed their visit to Moscow following the early termination of talks with Ukrainian representatives in Miami. Meanwhile, Axios reported that Russia has not yet officially agreed to the proposed refinery ceasefire. Addressing supply concerns, Kremlin spokesman Dmitry Peskov stated that global demand for Russian diesel remains huge and exports will proceed without disruption.
Armenia
The mine explosion involving a 750,000-barrel oil tanker in Hormuz and the postponement of US diplomatic talks in Moscow exacerbate regional logistics risks for Armenia. Rising freight costs of $8 per barrel place additional cost pressure on southern energy transit routes. Despite regional instability, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Natural gas imports from Russia and generation at the Armenian Nuclear Power Plant operate normally under long-term EAEU trade agreements shielding the market from price swings recorded by international market price assessments.