Market sentiment was shaken after reports that the United States shot down an Iranian drone near a US aircraft carrier in the Arabian Sea. The incident added to fears of possible supply disruption in a region that plays a key role in global oil flows.
Tensions increased further after Iranian vessels reportedly challenged a US-flagged oil tanker, the Stena Imperative, while it was passing through the Strait of Hormuz. US Central Command said the tanker was harassed by Iran’s Islamic Revolutionary Guard Corps.
The Strait of Hormuz is one of the world’s most important oil routes, and any disruption there can quickly affect global prices.
Diplomacy still on the table
Despite the tensions, US President Donald Trump said diplomatic talks with Iran remain open. The White House confirmed that US-Iran discussions are still scheduled for Friday, easing some fears of immediate escalation.