Ship Hit by Unknown Projectile Near Iranian Coast
The UK Maritime Trade Organisation (UKMTO) reported that a vessel was struck by an "unknown projectile" off the coast of Iran, raising concerns that ongoing conflicts in the Middle East could lead to increased global oil prices.
The British agency, responsible for monitoring trade routes, stated that the incident occurred north of Oman and east of the Strait of Hormuz. Although the ship's engine room caught fire, the blaze is now under control.
Warnings and Shipping Disruptions in the Strait of Hormuz
Iran has issued warnings advising ships to avoid passing through the Strait of Hormuz, a crucial maritime passage in the Gulf region. However, Iran has not formally closed the strait, a move analysts warn could significantly impact oil and petrol prices worldwide.
Most international shipping companies have suspended operations through the strait, which handles approximately 20% of the global oil and gas supply.
Details on the Vessel and Conflicting Reports
The UKMTO did not disclose the name of the vessel involved. However, unnamed maritime security sources informed that a Marshall Islands-flagged oil tanker sustained damage off Oman's coast.
Iranian state television reported that an oil tanker was sinking after being struck while allegedly attempting to "illegally" transit the Strait of Hormuz. The BBC has not independently verified this claim.
Escalating Military Actions in the Middle East
On Sunday, Iran and Israel exchanged fresh aerial attacks following US-Israeli strikes that resulted in the death of Iran's Supreme Leader Ayatollah Ali Khamenei on Saturday. These events triggered retaliatory strikes across multiple Middle Eastern countries.
Reported attacks have occurred in Dubai (UAE), Doha (Qatar), Bahrain, and Kuwait.
Amid these hostilities, numerous tankers have ceased movement to avoid navigating the strait.
Impact on Oil Markets and Prices
Although official oil markets were closed until 01:00 GMT, over-the-counter trades between private buyers indicated that Brent crude prices surged approximately 10%, reaching $80 (£59) per barrel.
On the preceding Friday, Brent crude had already climbed to $73 per barrel, marking its highest level since July. Some analysts have cautioned that prices could exceed $100 per barrel if the conflict persists.
Opec+ Response and Expert Opinions
On Sunday, the Opec+ alliance, which includes major oil producers such as Saudi Arabia and Russia, agreed to increase oil output by 206,000 barrels per day to mitigate potential price increases. Nonetheless, some experts remain skeptical about the effectiveness of this measure.
Edmund King, president of the AA, expressed concerns regarding fuel price surges:
"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," King told the Times.
"So drivers beware, within the next 10 to 12 days we could be seeing record prices at the pumps."
King highlighted that in 2022, fuel prices surged to over 190p per litre, while current prices stand at approximately 133p per litre.
