Top World News — October 12, Update
Diplomacy and escalation ran side by side in the Gulf overnight: Iran and Saudi Arabia made their first direct diplomatic contact of the current crisis cycle, while a drone strike on a tanker off Oman and a widening Saudi airport shutdown kept oil prices climbing in early Monday trading.
Iran and Saudi Arabia Hold First Direct Talks of the Crisis
Iranian Foreign Minister Abbas Araghchi spoke by phone with Saudi Foreign Minister Prince Faisal bin Farhan — the first direct diplomatic contact between Tehran and Riyadh since the current escalation cycle began. Iran offered to help facilitate a Saudi-Yemen dialogue, saying regional crises have “no military solution.” Iran continued to deny directing Houthi attacks, a line consistent with both sides’ long-standing positions.
Drone Attack on Tanker Off Oman; Two Sailors Missing
A tanker, the “Petro Dolphin,” was struck by a drone near Sohar anchorage in Oman, according to UKMTO reporting, and a crew evacuation is underway with two Indian sailors missing. The extent of the damage and any environmental impact is not yet known. Separately, Iran’s IRGC claimed a third tanker struck a sea mine in the Strait of Hormuz carrying about 750,000 barrels — an unverified claim being treated as such.
Oil Climbs as Goldman’s Forecast Moves Up
Oil prices rose in early Monday Asia trading on the Houthi escalation and weekend tanker incidents: Brent gained 0.73% to $105.48 on December futures and WTI added 0.64% to $92.44. Goldman Sachs raised its December Brent forecast to $90 from $85. Rising freight and diesel costs are keeping pressure on shipping lanes.
Saudi Toll Update; UK Expands Travel Warning
Saudi civil aviation said Sunday’s strike killed one Pakistani national and injured eleven, while terminals 3 and 4 at King Khalid International Airport were hit, with material damage still being assessed. The death toll now stands at 13 from Saturday plus one on Sunday. The UK expanded its travel warning to advise against all but essential travel to Jeddah and Dammam and to avoid all Saudi airports except Medina, with land-exit routes suggested via Bahrain, Kuwait, Qatar, the UAE and Jordan. Flightradar24 data showed 156 Jeddah flights cancelled (20%) and 347 delayed (49%), with Dammam nearly empty.
Iran Sets Conditions for Reopening the Strait of Hormuz
Iran’s Supreme National Security Council secretary Mohsen Rezaei said the United States had accepted some of Tehran’s seven conditions but called the response “inadequate.” He said reopening the Strait of Hormuz and resuming negotiations require an end to the US naval blockade and to restrictions on Iranian oil sales, adding there would be “no return to the status quo ante.” The IRGC posted a “We are waiting” missile-battery message, while a third US carrier group and a Marine expeditionary unit are expected to arrive in November.
Market snapshot: Bitcoin traded around $83,011, up about 0.30% in 24 hours, with Ether at $2,501.32. US spot Bitcoin ETFs recorded about $678.9 million in outflows over five sessions, while Ether ETFs logged a ninth straight outflow day. Ripple-backed Evernorth (XRPN) lists on NASDAQ today after its merger closed on October 9, and US traders return ahead of Wednesday’s September CPI report. Oil stands at Brent $105.48 and WTI $92.44 in early Monday trading.