Oil Prices Rise as Tanker Attacks Near Strait of Hormuz Raise Energy Supply Concerns

Global oil prices increased on Tuesday as reports of attacks on commercial vessels near the Strait of Hormuz raised fresh concerns over the security of one of the world’s most important energy trade routes.

At 04:43 GMT, international benchmark Brent crude oil rose by 51 cents to reach $72.50 per barrel, while West Texas Intermediate (WTI) crude increased by 43 cents to $68.98 per barrel.

The price increase followed reports that a liquefied natural gas (LNG) carrier named Al Rekayyat was struck near the Omani coast while leaving the Strait of Hormuz, according to reports by Bloomberg citing unnamed sources.

US media outlet Axios also reported that two merchant vessels had been hit by Iranian missiles, quoting unnamed US officials. The vessels were not identified in the report.

Meanwhile, the UK Maritime Trade Operations (UKMTO) stated that it received information regarding an incident on July 6, in which a tanker travelling around eight nautical miles east of Limah, Oman, was struck by an unknown projectile on its port side, resulting in a fire.

The incidents have increased concerns over maritime security in the Strait of Hormuz, a key global shipping route responsible for transporting a significant share of the world’s oil and petrochemical supplies from the Middle East.

A 60-day ceasefire agreement between the United States and Iran, which includes the reopening of the Strait of Hormuz, has been in effect since June 22 as both countries continue negotiations aimed at ending their months-long conflict that began on February 28.

However, the latest reports of attacks on commercial vessels have highlighted the ongoing security risks in the region and the fragile nature of the current peace discussions.

Market analysts say continued instability around the Strait of Hormuz could create further volatility in global oil prices and energy markets.

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