Maritime trackers received new reports of an attack on a vessel in the Strait of Hormuz on Sunday, adding to concerns about Iran-related threats to energy supplies after Saudi Arabia shut down a vital oil pipeline. The British navy-affiliated agency UKMTO said it had a report of a projectile hitting a vessel as it moved through the Strait of Hormuz. The amount of damage and the status of the crew were unknown as of early Sunday, the agency said.
Hormuz Strait Attacks and Saudi Pipeline Closure Spur Energy Market Concerns
UKMTO’s report came the day after Saudi Arabia said it had temporarily closed its East-West pipeline as a precaution after a drone attack that both Baghdad and Riyadh said had originated in Iraq, where Iranian-backed militias operate. The 1,200-km (745-mile) East-West pipeline running across the Arabian Peninsula has served as the main route out for global supplies of Middle East oil for the past six months while the Strait of Hormuz has been largely shut by war. It has been moving 4 million to 5 million barrels per day, amounting to 4% to 5% of global supply, sparing Saudi Arabia the brunt of the disruption.
New report of attack on Strait of Hormuz shipping
Ongoing attacks in the widening Middle East war could send energy prices even higher after a week that saw the cost of Brent crude surge back above $100 a barrel. The Saudi East-West pipeline, which had moved 4 million to 5 million barrels per day, was shut following the drone attack, according to three sources who said Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman had asked U.S. The pipeline’s closure and the attacks on shipping in the Strait of Hormuz have heightened fears of further disruptions to global energy markets.
Tehran claimed on Wednesday to have carried out its largest known wave of attacks on shipping since the start of the Iran war. Such assaults put the Strait of Hormuz under growing pressure, skyrocketing global crude prices and suggesting that recent efforts to gradually reopen the strategic waterway are at an impasse. U.S. Central Command (Centcom) claimed to have destroyed five Iranian oil carriers in the Gulf of Oman and near Iran’s Kharg Island, the latter of which hosts Tehran’s main oil export terminal.
A vessel has been struck in the contested Strait of Hormuz, according to multiple reports. The British navy-affiliated UKMTO confirmed the attack, though details about the amount of damage and the status of the crew were unknown as of early Sunday, the agency said. The incident occurred amid escalating tensions between the U.S. and Iran, with Iran reportedly striking an unmanned U.S. vessel trying to enter the Strait of Hormuz. The U.S. did not immediately confirm the attack, which came a day after the U.S. military said forces struck three Iranian oil tankers in response to a missile attack on Navy warships.
Iran Targets 10 Ships in Strait of Hormuz in
The war between the U.S. and Iran began with U.S. and Israeli attacks on Iran on Feb. 28. Since a ceasefire agreement was announced in June, on-and-off fighting has persisted, with both sides attempting to inflict military and economic pain as negotiations have collapsed. The U.S. and Iran resumed attacks last week, following a month of relative calm, with the Strait of Hormuz and Iranian communities along it again being targeted. At least five people were killed earlier in the week during a U.S. bombardment of southern Iran.
The Trump administration has adopted a dual-prong approach to the conflict, responding militarily to attacks on the strait while targeting foreign financial institutions that handle Iran’s money. However, Iran’s hard-line new senior leaders have signaled a willingness to dig in after weathering decades of sanctions. Iran has found ways to circumvent sanctions, and the country’s resilience has complicated U.S. efforts to pressure Tehran.
Commodity vessel traffic at the Strait of Hormuz further slowed on Wednesday as operators continued to avoid the area amid heightened security concerns and uncertainties about how far Iran’s control could extend. As of early Wednesday, ship-tracking data on Kpler showed that just six commodity vessels transited the Strait of Hormuz on Tuesday, down from nine crossings on Monday and below the 10-day average of 11 commodity ships. One empty crude oil supertanker and two smaller tankers moved into the Gulf on Tuesday via a lane close to Oman, while two medium-range fuel tankers and a post-Panamax vessel transited outbound from Hormuz, according to the Kpler data monitored by Reuters.
Attack on Strait of Hormuz shipping fans more oil
The U.S. Administration insists the Strait of Hormuz remains open to traffic, but Iran remains steadfast in its claim that the chokepoint is closed. Tanker traffic has become even more erratic this week, with vessels meandering and U-turning, unsure how to proceed amid escalating security threats and Iran’s insistence on control over the chokepoint. The security situation in the region has worsened in recent days after a cargo vessel was struck, according to reports.
Iran continues to try to hit U.S. ships in the Strait of Hormuz without a U.S. military response, according to The Wall Street Journal. Iran fired two ballistic missiles toward the strait, though the U.S. has not confirmed the attack. Meanwhile, Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman reportedly sought U.S. military assistance following the drone attack on the East-West pipeline, highlighting the growing reliance of Gulf states on American security guarantees.
As tensions escalate, market participants remain wary of further disruptions to maritime trade and energy prices.