Oil prices rise as tanker explodes near Hormuz amid US military buildup

Global oil prices climbed on Wednesday, 21 October, as Brent crude rose 0.78 per cent to $109.64 a barrel following a tanker explosion near the Strait of Hormuz and the deployment of additional US military assets to the region. West Texas Intermediate (WTI) also increased to $98.58 in early trading as shipping risks in the Persian Gulf and Red Sea unsettled global energy markets. Tanker explodes near Hormuz The Iranian Revolutionary Guards (IRGC) Navy confirmed on Tuesday, 20 October, that a supertanker carrying over 2 million barrels of crude oil caught fire after striking a naval mine south of the Strait of Hormuz. According to an IRGC statement, the vessel had disabled its radar and navigation systems, ignoring warnings while attempting to transit an unauthorized route. Tehran warned that shipowners disregarding security restrictions in the strategic waterway would face a "firm response." US expands Middle East naval presence The United States is escalating its regional military footprint, with the USS Theodore Roosevelt carrier strike group and the 13th Marine Expeditionary Unit scheduled to arrive by late November. The deployment includes approximately 10,000 personnel. The Roosevelt will join two other carriers already in the region—the USS George H.W. Bush and the USS George Washington—as Washington weighs renewed strikes against Iranian targets. Diplomatic deadlock persists Despite indirect mediation efforts by Pakistan and Qatar, Iranian officials have rejected…