US-Iran War highlights: US Task Force boosts intelligence support for Saudi forces amid Houthi attacks

The US military’s war with Iran has cost around $38 billion as of August 1, according to the nonpartisan Congressional Budget Office (CBO).

The CBO warned that the conflict could cost the Pentagon $2 billion to $3 billion or more every month if the fighting continues.

Monthly costs could rise further if the intensity of the conflict escalates, the CBO said.

The expenses include the cost of replacing used munitions, repairing or replacing equipment lost in combat and higher military fuel costs.

Defense Secretary Pete Hegseth estimated in July that the Iran war had cost $37.5 billion.

US military says it destroyed two Iranian boats after they attempted to seize a US unmanned surface vessel off Iran.

CENTCOM said the boats tried to take possession of a US Saildrone but were stopped after US forces “forcefully responded”.

Iranian state media reported two fishing boats came under attack in Hormozgan province, with several fishermen reportedly missing.

The incident comes amid the more than six-month-old US-Iran war and an ongoing struggle for control of the Strait of Hormuz.

The US says it has loosened Iran’s grip over the critical shipping corridor in recent weeks.

The drone involved was a 25-foot (8-metre) Saildrone capable of operating autonomously and used by CENTCOM to monitor maritime traffic.

CENTCOM said all of its surface drones remain accounted for.

The US military has said Saildrone technology is commercially available and not sensitive.

US task force supports Saudi forces with intelligence sharing and military planning assistance amid Houthi attacks, as per AFP report.

Houthis have intensified fighting against Saudi-backed forces and seized Yemen’s Red Sea coast and Bab al-Mandab Strait.

Saudi oil infrastructure has come under attack, adding pressure on the world’s biggest crude exporter.

Oil prices rose nearly $3 a barrel on Tuesday as fresh disruptions to Saudi and Libyan oil operations intensified supply concerns.

Brent crude gained $2.81, or 2.66%, to $108.49 a barrel, while WTI rose $3.29 to $104.68.

Both benchmarks were on track to close at their highest levels in nearly four months.

Oil loadings at Saudi Arabia's Yanbu Red Sea export terminal were suspended, according to shipping industry sources.

Saudi Arabia also informed some European customers that late-September crude cargoes would be cancelled, sources said.

Iran-backed Houthi forces launched fresh attacks on Saudi Arabia, adding to fears of prolonged supply disruptions.

A Houthi attack on Saudi Arabia's East-West Pipeline on Friday forced the kingdom to shut the vital export route.

The pipeline allows Saudi Arabia to bypass the Strait of Hormuz, through which about one-fifth of global oil supplies passed before the US-Iran war.

Saudi Arabia could run out of crude available for export within days if the East-West Pipeline remains offline, according to buyers and traders.

Asian LNG buyers are seeking more US gas as the Iran war and disruption in the Strait of Hormuz threaten Middle Eastern supplies.

Companies in Thailand, Pakistan and Bangladesh are discussing long-term LNG contracts with US suppliers.

China Gas Holdings signed a rare long-term sales agreement with US exporter Venture Global, starting in 2030, despite US-China tensions.

About one-fifth of global LNG flows previously passed through the Strait of Hormuz, but disruptions have now continued into the seventh month.

Qatar’s major LNG export terminal remains largely offline after missile strikes, worsening supply shortages in Asia.

Asian buyers are also exploring Canada, South America and Asia-Pacific LNG projects as alternatives to Middle Eastern supply. (Bloomberg)

Egyptian President Abdel Fattah al-Sisi and Saudi Crown Prince Mohammed bin Salman discussed the security of maritime navigation in the region.

Both stressed the need to ensure freedom and security of navigation in the Bab el-Mandeb Strait and the Red Sea.

Sisi expressed support for Saudi Arabia’s measures to protect its security and stability.

Sisi also backed efforts to reach a comprehensive and sustainable political solution to the Yemen crisis.

The Bab el-Mandeb is a key shipping route linking the Red Sea with the Gulf of Aden and is critical to regional and international trade.

Abu Dhabi National Oil Co (ADNOC) has bought millions of barrels of discounted Iraqi crude, expanding its trading role amid oil supply disruptions linked to the Iran war.

ADNOC was the largest buyer of Iraqi crude in August and September, according to Iraqi energy sources, as per Reuters.

ADNOC agreed to buy 32 million barrels in August at discounts of $24.90-$27 a barrel.

It agreed to purchase a further 40 million barrels in September, including 10 million barrels at an $18 discount and 30 million barrels at a $25 discount.

Iraq’s SOMO allocated ADNOC 32 million barrels in August, but ADNOC lifted only 20 million barrels because of export constraints.

ADNOC has lifted 14 million Iraqi barrels so far in September, one source said.

Another source said ADNOC bought around 20 million barrels from SOMO for September-October lifting at discounts of $25-$27 a barrel.

The purchases helped boost Iraqi crude exports, which had been sharply reduced earlier in the war. (Reuters)

Poland’s Orlen is urgently seeking alternative crude cargoes from the North Sea and other regions to replace disrupted Saudi imports.

Orlen bought several crude cargoes through spot tenders on Friday and Monday, including North Sea grades such as Grane, Johan Sverdrup and Johan Castberg.

The company also sought US WTI Midland and Kazakh CPC Blend crude, according to industry sources, as per Reuters.

Saudi Aramco has been Orlen’s largest crude supplier since 2022, accounting for about 40% of the crude it processes.

Orlen operates refineries in Poland, Lithuania and the Czech Republic.

Gdansk and Butinge together accounted for around 59% of Europe’s total Saudi crude imports this year, Kpler data showed.

At least four tanker fixtures carrying crude from Egypt’s Sidi Kerir terminal to Gdansk in September have failed.

Saudi Arabia’s East-West Pipeline was taken offline after an attack last Thursday, disrupting a key route for oil exports.

Orlen recently signed a deal with Norway’s Equinor for supplies covering up to 25% of its refining capacity, making it the company’s second-largest supplier. (Reuters)

Oil prices rose after attacks on Saudi Arabian energy infrastructure disrupted the kingdom’s East-West Pipeline.

Brent crude gained 0.2% to $105.89 a barrel, after touching $108.43, while WTI rose 0.89% to $102.29.

Fresh Houthi attacks on Saudi Arabia and delayed Gulf-Iran talks heightened concerns over oil supply disruptions.

The East-West Pipeline, which allows Saudi Arabia to bypass the Strait of Hormuz, could remain offline for days or weeks.

Turkish Foreign Minister Hakan Fidan said on Tuesday that reciprocal attacks in the Gulf were impacting peace efforts to end the U.S.-Iran war and called for them to immediately stop, adding Ankara also valued the stability of its neighbour Iran, Reuters reported.

Saudi Arabia vowed on Tuesday to respond "firmly" to attacks by Yemen's Houthis, after the Iran-backed fighters wounded 13 people in the kingdom in an assault using ballistic missiles and drones, AFP reported.

Qatar on Tuesday warned of dire consequences if the vital Bab al-Mandab waterway were to close, after a months-long blockade of the Strait of Hormuz and recent Houthi gains on the Red Sea coast.

"The world is suffering enough with the closure of the Strait of Hormuz, so we cannot also afford to add the Bab al-Mandab into that equation," Qatar foreign ministry official Ibrahim Al Hashmi told AFP.

Iranian Foreign Minister Abbas Araghchi will visit China on Wednesday, his second such trip since the US and Israel attacked his country in late February, Bloomberg reported.

A vessel was struck by an unknown projectile in the Strait of Hormuz on Monday, the United Kingdom Maritime Trade Operations (UKMTO) said on Tuesday, Reuters reported.

Yemen's Iran-aligned Houthis launched a new wave of attacks on Saudi Arabia while strengthening positions along Yemen's western Red Sea coast, Yemeni officials said. The developments came as urgent deliberations took place in Riyadh over how to respond to the Houthi advance.

Oil prices rose for a second day as traders assessed disruptions to Middle East supplies, with a critical Saudi Arabian pipeline still offline. Brent crude climbed above $107 a barrel, approaching an intraday peak of just below $110 touched on Friday, its highest level since May.

Australian Energy Minister Chris Bowen will travel to Saudi Arabia next week to meet his counterpart, Prince Abdulaziz bin Salman, as the escalation in the Middle East conflict raises concerns over global energy supply disruptions.

Shipping traffic through the Strait of Hormuz fell further at the start of the week as attacks intensified in the Middle East, shipping data showed. Commodity vessel transits totalled four on Monday, down from 10 the previous day, according to preliminary Kpler data released on Tuesday. Two dry bulk carriers exited the waterway, while two oil tankers entered, both in ballast mode.

Saudi Arabia's Civil Defence issued an all-clear on Tuesday after alerts for potential danger were issued in six cities, including Yanbu, the kingdom's main Red Sea oil port. The alerts came amid an uptick in attacks by Houthis.