Global Oil Prices Extend Move over $90 After Report of Two Tankers Struck in Hormuz

Dow Jones
Yesterday

Two oil supertankers were struck in the Strait of Hormuz, according to maritime risk management consultant Marisks.

Oil prices rose on Tuesday after reports of two oil tankers being struck in the Strait of Hormuz.

West Texas Intermediate's contract for October delivery (CL.1) (CLV26) advanced 2.5% to $87.95 a barrel, while Brent crude's November contract (BRN00) (BRNX26) climbed more than 2% to $92.38 a barrel. It brings both the U.S. and the international benchmark up to their highest levels in almost two weeks, according to Dow Jones Market Data.

This follows the news that two oil supertankers were hit by projectiles in the Strait of Hormuz, according to a Bloomberg report based on information from maritime risk management consultant Marisks.

Per the report, the Saudi Arabian-flagged Sidr, which is a large crude carrier operated by the country's national shipping company, Bahri, was struck as it was transiting east of Khasab, Oman.

The Senegal Prosperity, run by South Korea's Sinokor, was hit by three objects while also sailing east of Oman, Marisks said, adding that both vessels were attempting to exit the Persian Gulf.

The United Kingdom Maritime Trade Operations center reported an incident on Monday of a tanker being struck by three unknown projectiles while completing its transit of the key waterway. It said no casualties or environmental impacts were reported.

Peter Sidorov, of Deutsche Bank, wrote in a note Tuesday that the moves in oil prices come as a potential peace deal between the U.S. and Iran becomes "increasingly distant."

Over the weekend, Washington and Tehran exchanged strikes for the first time in about one month.

The U.S. launched strikes on Larak Island in the south of Iran, resulting in attacks on two U.S. military bases in Jordan. And on Sunday night, President Donald Trump uploaded an artificial intelligence-generated video to Truth Social of missiles being dropped on Kharg Island, a hub through which about 90% of Iran's crude oil is shipped through.

-Nora Redmond

 

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