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A top US official has indicated that the United States Navy is not yet ready to escort oil tankers through the Strait of Hormuz but could begin doing so within weeks.
Some shit you should know before you dig in: If you’re unaware, the Strait of Hormuz is one of the most vital maritime chokepoints in the world. Located between the Persian Gulf and the Gulf of Oman, this narrow waterway, which is only about 21 miles wide at its narrowest point, handles roughly 20% of the world’s petroleum and about a third of all seaborne oil shipments. Every day, roughly 100 oil tankers and merchant vessels pass through it, transporting crude oil from major producers like Saudi Arabia, Iraq, the UAE, and Kuwait to markets in Asia, Europe, and beyond. Since the conflict with Iran broke out, there have been no vessels moving through the strait over concerns that they could become“legitimate targets” for Iran. Over the last few days, multiple tankers have been targeted, with some hit by Iranian one-way attack drones.
What’s going on now: In an interview on CNBC’s “Squawk Box,” US Energy Secretary Chris Wright said the Navy is not yet ready to begin escorting tankers through the Strait of Hormuz but indicated it could happen soon. “It’ll happen relatively soon but it can’t happen now. We’re simply not ready,” Wright said, adding, “All of our military assets right now are focused on destroying Iran’s offensive capabilities and the manufacturing industry that supplies their offensive capabilities.” Wright signaled that escorts could begin within weeks, telling the network that such a move by the military is “quite likely” within the next month and noting, “I’ll be over at the Pentagon later today … that is what the military is working on.”
Wright also addressed the surge in global oil prices tied to the disruption in the strait. While Brent crude briefly climbed toward $100 a barrel, he pushed back on warnings from Iranian officials that prices could spike dramatically higher. “I’m not going to guess on short-term trading. That’s based on psychology more than flows of oil,” Wright said, arguing that the global market remains well supplied. “The world is very well supplied with oil right now.” His comments are notably different from Iranian officials, who have warned that continued instability could send crude prices to $200 per barrel.
The comments also come as Treasury Secretary Scott Bessent has suggested that naval escorts are likely once conditions allow. Speaking to Sky News, Bessent said he believes “as soon as it is militarily possible, the U.S. Navy, perhaps with an international coalition, will be escorting vessels through.” He also claimed that some ships are still moving through the waterway, noting that Iranian and Chinese-flagged tankers have transited the strait and adding that there is no indication Iran has mined it.
