More tankers struck in the Middle East as Iran reiterates conditions for reopening the Strait of Hormuz

At least two vessels were struck over the weekend in waters near Oman and Iran, the United Kingdom Maritime Trade Operations Centre reported, as Tehran reiterated its position on Sunday that the Strait of Hormuz would not reopen unless its conditions for ending the war with the U.S. are met.

On Saturday, the UKMTO, a British maritime security alert service, said it received a report of a crude oil tanker being hit by an unknown projectile four nautical miles east of Oman. It said another tanker was reported as being similarly struck Sunday in the Strait of Hormuz, causing damage to its engine room.

Attacks on shipping in the strait, through which about a fifth of the world’s oil supplies moved before the start of the U.S. and Israel-led war on Feb. 28, have been happening on a regular basis for weeks.

“The Strait of Hormuz will not open until Iran’s seven conditions based on the Islamabad Memorandum are met, and Iran will not regulate its national security with tweets from American officials,” Iranian state media agency Nour News quoted Parliament Speaker Mohammad Bagher Ghalibaf as saying Sunday.

President Donald Trump and Iranian President Masoud Pezeshkian signed an interim deal in June, known as the Islamabad Memorandum of Understanding, that resulted in a brief hiatus in fighting.

Tehran’s conditions for allowing ships to proceed freely through the Strait of Hormuz include a halt to U.S. “acts of aggression,” an end to the U.S. naval blockade of its ports and economic warfare, and the release of Iranian assets.

A key demand of the U.S. has been that Iran dismantle its nuclear weapons program.

Meanwhile, Saudi Arabia’s energy infrastructure reportedly came under renewed attacks.

Reuters reported Saturday that Yemen’s Iran-aligned Houthis said they had targeted a facility owned by Saudi Arabian oil giant Aramco in the capital Riyadh with ballistic missiles and drones. The group said the attack was in retaliation for Saudi attacks on Yemen’s Sanaa and other provinces.

A large plume of smoke and fire rose above the facility, Reuters quoted a witness as saying.

Saudi authorities have not commented on the reported attack. Aramco did not immediately respond to CNBC’s emailed request for comment.

If confirmed, it would be the latest escalation in what has effectively become a second front in the Iran war.

Some investors say they expect full-scale fighting to resume in the Middle East.

“The situation is fluid and volatile. To me, as we are developing and looking at the situation, it’s not a question of if, but when the conflict resumes full force,” Bader Al-Saif, founding president of Al-Saif Consulting, told CNBC’s Access Middle East show on Friday.

The ongoing attacks and prospect of a further escalation have driven energy prices higher in recent weeks, raising inflation expectations globally and putting upward pressure on government borrowing costs.

Reports that the U.S. is sending a third aircraft carrier strike group to the Middle East, along with an amphibious force carrying 2,000 Marines, pushed crude oil prices higher on Thursday. But prices edged lower Friday, after the Group of Seven nations announced the release of diesel and crude stocks to ease the burden on consumers.

Brent crude futures, the international benchmark, lost 6 cents to close at $102.25 per barrel, while U.S. West Texas Intermediate crude shed $1.76 to settle at $91.11 per barrel.