Vessel Hit by Projectile Raises Brent Crude Prices Above $91

On Tuesday, a cargo vessel was struck by an unidentified projectile while transiting the Strait of Hormuz, resulting in damage to the engine room and a crew casualty. The United Kingdom Maritime Trade Operations (UKMTO) reported the incident, stating that the remaining crew is being assisted by the Omani Coast Guard.

No environmental impact has been reported. This incident occurred near the Omani shores, amidst rising security concerns due to ongoing tensions between the United States and Iran regarding control over the vital shipping lane for oil and LNG.

Following the incident, Brent Crude oil prices surged above $91 per barrel, trading at $91.50, while the U.S. benchmark, WTI Crude, rose to $85.28. Analysts from ING, Warren Patterson and Ewa Manthey, noted that the prices are supported by renewed fighting in Lebanon and attacks on vessels in the Strait of Hormuz, complicating the prospects for a U.S.-Iran deal.