Oil price climbs above $90 after ship attack in Strait of Hormuz

"Shipping passing through the strait has dropped from around 100 vessels per day to fewer than five, and most of those appear to be Iranian ships. The danger of further strikes has effectively paralysed maritime traffic, leaving around 1,000 commercial vessels stranded in the Gulf, including an estimated 80 to 90 ships with UK interests, as shipping companies refuse to risk moving cargo through the increasingly dangerous corridor."

"The incident is the latest in a series of attacks targeting vessels in the Gulf region, underscoring the growing risks to global oil and gas supply chains as the Middle East conflict intensifies. Attacks on vessels have been indiscriminate and spread across the region, including incidents near Kuwait and in the western Persian Gulf."

Brent crude oil climbed to approximately $92.34 per barrel following an attack on a commercial cargo ship in the Strait of Hormuz, which caught fire after being struck by an unidentified projectile. This incident represents the latest in a series of attacks on vessels in the Gulf region, intensifying concerns about disruptions to global energy supplies. The Strait of Hormuz, a critical waterway carrying roughly one-fifth of world oil exports, has experienced a dramatic collapse in maritime traffic, declining from approximately 100 vessels daily to fewer than five. Around 1,000 commercial vessels remain stranded in the Gulf as shipping companies avoid the increasingly dangerous corridor. Additional vessel strikes within 24 hours further underscore mounting risks to global oil and gas supply chains amid escalating Middle East tensions.

Read at Business Matters