Global oil prices haverisenafter at least three ships were attacked near the Strait of Hormuz, as Iran continues to launch strikes across the Middle East in response to ongoing attacks by the US and Israel.
Two vessels have been struck, and an “unknown projectile” was reported to have “exploded in very close proximity” to a third, the UK Maritime Trade Operations Centre (UKMTO) said.
Iran has warned ships not to pass through the strait, which carries about 20% of the world’s oil and gas.
International shipping has almost come to a standstill at the strait’s entrance, with analysts warning that a prolonged conflict could push energy prices even higher.
In early trade in Asia on Monday, global oil prices jumped by more than 10% before those gains eased during the morning.
At 02:00 GMT, Brent crude was more than 4% higher at $76.16 (£56.53) a barrel, while US-traded oil was also up by around 4% at $69.67.
“The market isn’t panicking”, Saul Kavonic, head of energy research at MST Marquee told the BBC.
“There is more clarity that so far, oil transport and production infrastructure hasn’t been a primary target by any side,” he added.
“The market will be watching for signs that traffic through the Strait of Hormuz returns, which would see oil prices subside again.”
But some analysts have warned it could go over $100 in the event of a prolonged conflict.
On Sunday, the Opec+ group of oil producing nations – which includes Saudi Arabia and Russia – agreed to increase their output by 206,000 barrels a day to help cushion any price rises, but some experts doubt this would help much.
Edmund King, president of the AA, warned the disruption could drive up petrol prices around the world.
“The turmoil and bombing across the Middle East will surely be a catalyst to disrupt oil distribution globally, which will inevitably lead to price hikes,” he said.
“The magnitude and duration of pump price increases depends on how long the conflict goes on.”
Iran’s Islamic Revolutionary Guards Corps (IRGC) said three tankers from the UK and US had been “struck by missiles and are burning”. The UK and the US have not commented.
The UKMTO said “multiple security incidents” had been reported across the Arabian Gulf and Gulf of Oman, and it has advised ships to “transit with caution”.
At least 150 tankers have dropped anchor in open Gulf waters beyond the Strait of Hormuz, although a handful of Iranian and Chinese vessels have passed through today, according to ship-tracking platform Kpler.
“Because of Iran’s threats, the strait is effectively closed,” Homayoun Falakshahi from Kpler told BBC News.
“The vessels have taken a precautionary measure not to enter as the risks are too high and their insurance costs have sky-rocketed.”
He said the US would likely try to protect shipping routeswhich, if effective, would prevent an oil price spike, but if the straitremained shut for a long period prices could go “much, much higher”.
The UKMTO said two vessels, which it did not identify, were hit by unknown projectiles, causing fires.
And an unknown project “exploded in very close proximity” to a third, it said, adding the crew of the ship, which it also did not identify, were safe and well.
A fourth incident in the area was also reported to the UKMTO, which it said involved the evacuation of the crew, but the cause is unclear.
Private maritime security company Vanguard Tech said incidents had been reported – which match the details provided by the UKMTO – involving ships flagged to Gibraltar, Palau, Marshall Islands, and Liberia.
Danish container shipping group Maersk said in a statement on Sunday that it would pause sailings through the Bab el-Mandeb Strait and the Suez Canal and reroute ships around the Cape of Good Hope.
Iran and Israel launched fresh aerial attacks against each other on Sunday, after US-Israeli strikes killed Iran’s Supreme Leader Ayatollah Ali Khamenei on Saturday and prompted retaliatory strikes on several countries in the Middle East.
Strikes have been reported in Dubai in the UAE, Qatar’s capital Doha, Bahrain, and Kuwait.
Source: BBC
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