Brent crude surged to nearly $90 per barrel on Tuesday after Iran launched missile strikes on two United Arab Emirates oil tankers transiting the Strait of Hormuz, escalating security concerns in the world's most important oil shipping corridor and extending the recent rally in global crude prices.
The latest attack on commercial shipping intensified fears of further disruptions to Middle East oil exports, prompting traders to price in a higher geopolitical risk premium as tensions between Iran and the United States continued to escalate.
During early trading, Brent crude climbed by more than three percent to trade above $86 per barrel before extending gains toward the $90 level, while U.S. benchmark West Texas Intermediate (WTI) rose above $80 per barrel for the first time in a month. The latest advance pushed oil prices roughly 12 percent higher since Friday, reflecting growing concerns over the security of energy supplies from the Gulf.
According to the UAE Ministry of Defence, the Mombasa and Al Bahiyah tankers were struck by two Iranian cruise missiles while navigating the southern shipping lane of the Strait of Hormuz within Omani territorial waters.
The attack killed one Indian crew member aboard the Mombasa and injured eight others, including four who sustained serious injuries. Both Very Large Crude Carriers suffered significant structural damage.
The UAE condemned the incident as a serious violation of international law and warned that it reserved the right to respond.
"This blatant attack is considered a serious violation and a clear breach of international law that threatens the security and stability of the region," the ministry said.
ADNOC Logistics and Services later confirmed that Al Bahiyah, one of its owned Very Large Crude Carriers, and Mombasa B, which it operates under a time charter arrangement, were damaged in the attacks during the early hours of Tuesday.
The latest strike represents one of the most significant attacks on commercial shipping since the conflict between Iran, the United States and Israel intensified earlier this year. It also raises fresh concerns about the safety of vessels using the southern shipping corridor near Oman, a route many operators had increasingly relied on as military tensions escalated elsewhere in the Strait.
The Strait of Hormuz remains the world's most important energy chokepoint, carrying about 20 million barrels of crude oil and petroleum products daily, equivalent to roughly one-fifth of global oil consumption, alongside around 20 percent of global liquefied natural gas exports.
Market participants said the latest attack reinforced fears that continued military escalation could further disrupt tanker movements through the waterway, tightening global crude supplies and sustaining upward pressure on oil prices in the near term.