Ata mārie and welcome to your Friday recap of global business and political news.
First up, US Energy Secretary Chris Wright said the Navy was not ready to escort oil tankers through the Strait of Hormuz in the ongoing Middle East conflict, as Iran puts pressure on global energy. “It’ll happen relatively soon, but it can’t happen now,” Wright said.
“We’re simply not ready. All of our military assets right now are focused on destroying Iran’s offensive capabilities and the manufacturing industry that supplies their offensive capabilities.”
Wright told CNBC the Navy could be in a position to escort tankers by the end of this month. Meanwhile, brent crude oil prices touched US$100 per barrel as attacks on commercial vessels in the Persian Gulf continued this week.
Importantly, in his first public remarks as Iran’s supreme leader, Ayatollah Mojtaba Khamenei said the Strait of Hormuz would remain closed in order to pressure Iran’s enemies. He was not seen in the broadcast, and the statement was delivered by a newsreader, the Guardian reported.
The BBC said that the Strait of Hormuz is a key waterway for energy shipments. As well as transporting oil, liquefied natural gas is shipped through the passage and surrounding countries operate refineries which produce jet fuel and diesel.
Meanwhile, US President Donald Trump claimed higher oil prices was a benefit to the US, in a post on Truth Social.
“The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money. BUT, of far greater interest and importance to me, as President, is stopping an evil Empire, Iran, from having Nuclear Weapons, and destroying the Middle East and, indeed, the World. I won’t ever let that happen!”
And in developing news, two tankers have been set ablaze in Iraqi waters in an apparent escalation in the Iranian conflict, the ABC reported. Images, verified by Reuters, showed the ships engulfed in massive fire.
Iraqi authorities said the vessels had been attacked overnight by Iranian boats filled with explosives. At least one crew member was killed.
The Dow Jones Industrial Average was down 1.4%, the S&P 500 fell 1.3%, and the Nasdaq lost 1.5%.
US President Donald Trump.
Elsewhere, a Costco customer in the US has taken the retailer to court, demanding that the company use potential tariff refunds to return money to consumers, the BBC reported.
Customer Matthew Sockov argued that Costco was in a position to potentially recoup its tariff costs twice from customers through elevated pricing and from the government. He said that amounted to "unjust enrichment".
Last month, the US Supreme Court rejected many of Trump's tariffs. The ruling left the refund process in the hands of the Court of International Trade, which ordered the government to start returning money.
Finally, UK regulators called on social media firms to enforce stricter protection for children on their platforms after a blanket ban for under-16s was rejected.
Online safety organisations had written to YouTube, TikTok, Facebook, Instagram, and Snapchat, urging them to tackle a broad range of child safety issues. UK lawmakers had earlier voted against a proposal to include a social media ban for under-16s in child welfare legislation, CNBC reported.
