US Navy 'not ready' to protect oil tankers in Gulf

(Sharecast News) - The US Navy is "not ready" to escort oil tankers through the Strait of Hormuz, America's energy secretary confirmed on Thursday. Last week US president Donald Trump said the country's navy would help protect ships in the Middle East "if necessary", helping to temporarily calm volatile energy markets.

Shortly afterwards, energy secretary Chris Wright announced on social media that the military had provided protection for an oil tanker travelling through the Strait of Hormuz. However, the post was then deleted, with the White House confirming there had been no escort, and on Thursday Wright said the US Navy was not currently able to provide protection for vessels.

In an interview with CNBC, he said: "It'll happen relatively soon but it can't happen now. 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."

He added that the Navy expected to be able to escort tankers from the end of March. "I'll be over at the Pentagon later today - that is what the military is working on."

Oil prices have soared since America's attacks on Iran led to the outbreak of war in the region. Around a fifth of the world's oil supply is transported through the narrow Strait of Hormuz, but it is currently deemed too dangerous to pass. Iran has also pledged to attack any vessels or oil tankers belonging to the US, Israel or their allies.

As at 1230 GMT, benchmark Brent crude was up 7% at $98.48 a barrel, while West Texas Intermediate was 7% higher at $93.29.