Oil Markets Rise as Tanker Struck Near Oman; Israel Issues Threat During Khamenei Funeral

The U.S.-Iran conflict entered a volatile new phase over the last 24 hours as energy markets reacted to fresh maritime aggression. A tanker caught fire east of Oman’s Limah after being hit by an unknown projectile near the strategic Strait of Hormuz. While no injuries were reported, the incident prompted a rise in global oil prices, with Brent futures reaching $72.45 per barrel. Shell also reported significant impacts on regional gas production, citing supply chain disruptions caused by the ongoing war. On the diplomatic front, President Donald Trump signaled a hardening stance, declaring that Tehran must either accept a U.S.-proposed deal or face military action to 'finish the job.' Despite the escalation, Iran’s chief negotiator suggested that a resolution remains 'within reach,' though disagreements persist. The rhetoric was further sharpened by Israel’s Defense Minister, who issued a direct threat to the Iranian regime while millions of mourners gathered in Qom for the funeral of Supreme Leader Khamenei, who was killed in a joint U.S.-Israel operation in February. Inside Iran, the political transition remains clouded as the designated successor, Moja Kenei, has not appeared publicly since the assassination. Amidst the mourning, Iranian officials have signaled their intent to maintain regional influence; Parliament Speaker Mohammad Bagher Ghalibaf met with Hamas leadership to reaffirm Tehran’s commitment to its regional proxies. The combination of targeted threats, maritime strikes, and economic fragility underscores a shift toward a broader regional and economic confrontation.