Level 1 - Absolute Beginner
Iran says it hit seven oil ships. The ships were near the Strait of Hormuz. The strait is a narrow sea road for oil.
The price of oil went up fast on Friday. Brent oil went above 117 dollars for one barrel. This is the highest price in the war.
President Trump says Iran is not telling the truth. He says the ship attacks are made up. He says Iran wants a high oil price. A U.S. official says a strike could happen this weekend.
- tanker
- A big ship that carries oil.
- strait
- A narrow sea road between two pieces of land.
- oil
- A thick liquid used to make fuel.
- price
- How much money you pay for something.
- barrel
- A large container for oil.
- war
- A fight between countries.
- strike
- An attack, often from the air.
- weekend
- Saturday and Sunday.
Level 2 - Elementary
Iran's Revolutionary Guard said on Friday that it had disabled seven tankers near the Strait of Hormuz. The strait is a narrow waterway that normally carries about one fifth of the world's oil.
After the news, the price of Brent crude oil briefly rose above 117 dollars a barrel. That is the highest level since the war began. By the end of the day it settled at 116.72 dollars, up 3.1 percent.
President Trump said Iran is making up some of the attacks to push oil prices higher before the midterm elections. Iran's foreign minister said indirect talks with Washington are still going on through Pakistan and Qatar, but Mr. Trump says the United States is not negotiating.
- disable
- To damage something so it cannot work.
- waterway
- A river, canal or strait that ships use.
- briefly
- For a short time only.
- settle
- To end a day at a certain price.
- midterm elections
- Elections held halfway through a president's term.
- foreign minister
- The government leader in charge of relations with other countries.
- indirect
- Not direct, with a middle person between two sides.
- mediator
- A person or country that helps two sides talk.
Level 3 - Intermediate
Iran's Revolutionary Guard claimed on Friday that it had disabled seven tankers near the Strait of Hormuz, and the claim sent Brent crude above 117 dollars a barrel for a short time, the highest price since the war began. Brent settled at 116.72 dollars, a gain of 3.1 percent, and U.S. crude closed at 103.27 dollars.
President Trump accused Tehran of inventing reports that ships are hitting mines or being hit by missiles and drones, saying the goal is to lift oil prices before the midterm elections. Only some of Iran's earlier claims about ship attacks have been confirmed by independent sources, so the details of Friday's claim remain unclear.
The diplomatic picture is also confused. Foreign Minister Abbas Araghchi said on October 21 that indirect talks with Washington continue through Pakistan and Qatar, yet Mr. Trump denies any negotiation. Meanwhile, U.S. ambassador Tom Barrack answered "Absolutely" when an Israeli radio host asked if a strike could come this weekend, although he does not have a direct role in Iran policy.
- claim
- To say that something is true without full proof.
- independent
- Not connected to either side of a dispute.
- confirm
- To show that something is true.
- accuse
- To say that someone did something wrong.
- mine
- A hidden explosive placed in water or on land.
- diplomatic
- Related to relations between governments.
- deny
- To say that something is not true.
- escalation
- A step up in the level of a conflict.
Level 4 - Advanced
A single claim from Iran's Revolutionary Guard, that it had disabled seven tankers near the Strait of Hormuz, was enough on Friday to push Brent crude past 117 dollars a barrel, the highest print of a war that has run for months. The benchmark later settled at 116.72 dollars, up 3.1 percent, while U.S. crude finished at 103.27 dollars.
The episode shows how thin the information is that moves the market. President Trump accuses Tehran of fabricating reports of mines, missiles and drones to inflate prices ahead of the midterm elections, whereas independent confirmation has been partial at best. Traders, however, price the risk first and verify later, because the strait normally carries roughly a fifth of the world's petroleum.
Diplomacy offers little relief. Foreign Minister Abbas Araghchi insists that indirect contacts with Washington continue through Pakistani and Qatari mediators, a claim the White House rejects, while Ambassador Tom Barrack, who has no formal role in Iran policy, told Israeli army radio that a strike this weekend was "absolutely" possible. A report that the United States and Israel may be drawing up plans for renewed attacks added to the sense that the next move belongs to the military planners rather than the negotiators.
- benchmark
- A standard price used to measure others.
- fabricate
- To invent something false.
- partial
- Not complete.
- petroleum
- Crude oil and the fuels made from it.
- mediator
- A neutral party who helps opposing sides talk.
- formal
- Official and recognised.
- inflate
- To make something larger than it should be.
- print
- In markets, a recorded price level.