Iran Attacks Maritime Navigation Systems on Omani Island

Iran attacked navigation systems used by vessels on Didamar Island, an Omani territory in the Strait of Hormuz. The action was announced by Iranian state TV on Tuesday (10) and confirmed on Wednesday (11) by three sources familiar with the matter.

According to state media, the Revolutionary Guard destroyed enemy navigation systems on the island, also known as Little Quoin, including radar and communication equipment. Tehran accuses the facility of helping ships cross the strait without its authorization and supporting what it calls oil smuggling.

The extent of the damage has not been confirmed. A video showed smoke rising from the island, though it was impossible to determine what was burning, and an image from the European Copernicus satellite recorded thermal activity at the site. Omani authorities and the United States Central Command did not comment immediately.

Shipping industry sources estimate that the effect on commercial traffic should be limited because there are other support systems in the region. Even so, the attack shows that Tehran can strike the infrastructure that has been helping to restore the flow of oil from the Gulf.

In September and October, exports from the region returned to more than 80% of the level prior to the war, which began in late February, with American military escort in Hormuz and more Saudi shipments through the port of Yanbu in the Red Sea.

On Thursday (12), oil opened lower on bets for peace negotiations, but uncertainty in Hormuz remains on the market's radar. Threats to the main oil export route from the Gulf tend to increase risk aversion, which may weigh on Bitcoin.