Brent crude climbed above $91 a barrel on Tuesday after a cargo vessel was struck by an unidentified projectile while transiting the Strait of Hormuz, adding to concerns that escalating regional tensions could disrupt oil and LNG supplies.
The incident was reported by the United Kingdom Maritime Trade Operations (UKMTO), a Royal Navy-sponsored maritime security organisation, which said the vessel was hit while making an outbound passage through the strategic waterway.
According to a UKMTO warning, the vessel’s company security officer reported that an unknown projectile struck the ship as it was leaving the Strait of Hormuz. The impact damaged the engine room and resulted in a crew casualty.
The remaining crew members were being assisted by the Omani Coast Guard, while no environmental impact had been reported at the time of the warning.
The incident occurred near the Omani coast, in what was believed to be the southern outbound route connecting the Persian Gulf with the Gulf of Oman.
The attack comes as tensions between the United States and Iran remain high, particularly over control and access to the Strait of Hormuz, a critical route for global energy shipments.
Oil markets responded to the latest security development by pushing crude prices higher in early Asian trading. Brent crude rose 0.69% to $91.50 a barrel, while West Texas Intermediate (WTI) gained 0.92% to $85.28 a barrel.
The move above $91 comes after oil prices had already strengthened on Monday following Iran’s rejection of an extension to its memorandum of understanding with the United States, raising doubts over the prospects of a near-term diplomatic resolution.
The latest vessel incident has added another layer of risk to a market already concerned about severely reduced traffic through Hormuz.
The waterway is particularly important to global energy markets because large volumes of crude oil, refined products and liquefied natural gas move through it. Any prolonged disruption could therefore tighten supplies and increase the risk premium embedded in international oil prices.
Regional tensions have also widened beyond the immediate US-Iran confrontation, with renewed fighting in Lebanon adding to concerns over the broader security environment across the Middle East.
ING commodities strategists Warren Patterson and Ewa Manthey said renewed fighting in Lebanon and attacks on vessels in the Strait of Hormuz were supporting oil prices by increasing concerns about regional supply disruptions and making a US-Iran agreement more difficult to achieve.
The latest developments leave traders closely watching both the security of shipping through Hormuz and the direction of US-Iran relations, with any further attacks or deterioration in diplomacy capable of adding additional upward pressure to crude prices.