Vessel Attack in Strait of Hormuz Raises Energy Prices

The United Kingdom Maritime Trade Operations (UKMTO) reported that a projectile struck a vessel in the Strait of Hormuz, leading to a fire and the evacuation of the crew by local authorities. This incident occurred on a Sunday, following a drone attack that Saudi Arabia attributed to Iranian-backed militias in Iraq, which resulted in the temporary closure of its East-West pipeline.

This pipeline, spanning 1,200 kilometers, has been crucial for global oil supplies, transporting 4 to 5 million barrels per day, representing 4% to 5% of global supply. The attack on the pipeline has raised concerns about energy prices, which have already surged above $100 a barrel for Brent crude.

Satellite images indicated black smoke rising from the pipeline area south of Medina, and while there were injuries reported, the Saudi Foreign Ministry did not provide details on the impact on oil exports.