Global oil prices climbed above $90 per barrel on Tuesday after fresh attacks on oil tankers in the Strait of Hormuz heightened fears of a prolonged disruption to crude supplies from the Middle East.
Brent crude rose above the $90-per-barrel mark as reports emerged that a Kuwait-owned oil products tanker was struck by an unidentified projectile near Oman, while Iran’s Islamic Revolutionary Guard Corps claimed that two oil tankers caught fire following explosions in the strategic waterway.
According to Oilprice.com, the Kaifan tanker, owned by Kuwait Oil Tanker Co. S.A.K., was hit by an unknown projectile in the Strait of Hormuz yesterday, citing maritime security consultancy EOS Risk Group.
The United Kingdom Maritime Trade Operations said it received reports early Tuesday of an incident about eight nautical miles northeast of Limah, Oman. In an advisory, the UKMTO said it had received multiple reports over VHF Channel 16 that a tanker had been struck by an unknown projectile in the Strait of Hormuz.
The disruption has pushed tanker traffic through the Strait to a two-month low, fuelling concerns over potential supply shortages during the peak summer demand season.
Regional tensions escalated further after Yemen’s Iran-backed Houthi movement announced an immediate naval blockade of Saudi Arabia, threatening an alternative export route used by the kingdom to bypass the Strait of Hormuz.
Meanwhile, IranWire reports that the IRGC claimed two oil tankers attempting to use what it described as the “southern route of the Strait of Hormuz” suffered severe fires after explosions and were brought to a halt.
In a statement issued on Tuesday, the IRGC reportedly described the vessels as “violators”, alleging that they attempted to navigate the southern corridor before being disabled by the explosions. The group said search and rescue teams were evacuating the crews from the affected vessels.
The IRGC also warned international shipping companies against using what it called “dangerous” routes, insisting that the Strait of Hormuz would remain closed while United States military strikes continued.
It declared that “not a single drop of oil, gas, or petrochemical products” would pass through the waterway without the authorisation of the Islamic Republic.
IranWire notes that the UKMTO separately confirmed receiving reports of a tanker damaged by an unidentified projectile in the southern Strait of Hormuz, forcing the crew to abandon the vessel, although it did not identify the ship or its owner.
It remains unclear whether the vessel reported by the UK authority was one of the two tankers the IRGC claimed to have struck or an entirely separate incident.
The IRGC said the southern route referred to a shipping corridor designated by Oman for foreign vessels under a memorandum of understanding between the United States and Iran, an arrangement Tehran has rejected in favour of the northern route under Iranian control.
The latest attacks have intensified concerns over the security of one of the world’s most critical oil transit chokepoints, with traders closely monitoring developments for their potential impact on global energy supplies.
The PUNCH recalls that oil prices dropped to $71 when the United States and Iran signed a ceasefire agreement in June, bringing down fuel prices.
The resumption of strikes between the United States and Iran as well as the reclosure of the Strait of Hormuz prompted a sharp rise in oil and fuel prices.
SOURCE: PUNCH NEWS PAPER
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