Oil rises after Strait of Hormuz attack disrupts ship evacuation
Brent crude climbed after the IMO paused plans to evacuate stranded ships following a cargo vessel strike near the Omani coast.
By James Whitfield · Staff Writer
3 min read
Oil prices rose Thursday after the International Maritime Organization halted a planned evacuation of ships stranded around the Strait of Hormuz, Al Jazeera reported. The pause followed an attack on a cargo vessel in a waterway that carries about one-fifth of global oil and liquefied natural gas supplies in peacetime, according to Al Jazeera.
Al Jazeera reported that Brent crude, the international benchmark, gained as much as 4 percent after the IMO suspended the operation amid renewed violence in the strait. Brent futures for August delivery were at $74.89 a barrel at 02:00 GMT, after earlier falling below $72.48, Al Jazeera reported.
The $72.48 level was Brent’s closing price on the day before the United States and Israel launched their war on Iran, according to Al Jazeera. Al Jazeera reported that Brent had dropped sharply after the US and Iran signed a memorandum of understanding last week on ending the war, but was trading about 3 percent above its pre-war level.
Markets fall in Asia
Asian stock markets opened lower Friday, with Al Jazeera reporting steep losses in major indexes in Japan, South Korea, Hong Kong and Taiwan. Tokyo’s Nikkei 225 and Seoul’s Kospi each fell more than 3 percent in morning trading, while Taiwan’s Taiex declined about 1 percent, according to Al Jazeera.
Hong Kong’s Hang Seng Index was also down about 1 percent, Al Jazeera reported. The moves came as the vessel attack raised fresh concerns about shipping security after signs of a recovery in traffic through the strait.
MarineTraffic and Kpler ship-tracking data cited by Al Jazeera showed 70 vessels passed through the waterway on Wednesday. Al Jazeera reported that the figure was more than double the previous day’s traffic and the highest daily total since March 1.
Cargo vessel struck near Omani coast
The United Kingdom Maritime Trade Operations centre said Thursday that a cargo vessel reported being hit by an “unknown projectile” on its starboard side while trying to cross the Strait of Hormuz near the Omani coast, according to Al Jazeera.
Al Jazeera reported that several media organizations, including The New York Times, CBS News and Reuters, cited unnamed US officials who said Iran carried out the attack. Iran’s Persian Gulf Strait Authority, which Al Jazeera said claims the right to regulate shipping in the strait, issued a warning after the incident.
In a post on X quoted by Al Jazeera, the authority said vessels using routes outside its designated “framework” would not be assured safe passage. “The consequences arising from passage through unauthorized routes shall be the responsibility of the owner, operator, and vessel commander,” the authority said.
June Goh, a senior oil market analyst at Sparta in Singapore, told Al Jazeera the attack reminded markets that peace in the strait remained fragile under the US-Iran ceasefire. Goh said tankers needed to enter and unload high crude stocks from onshore tanks so normal production could resume, adding that secure passage was needed to recover lost supply.
This story draws on original reporting from Al Jazeera.