On a Thursday when oil markets were already weary from a week of falling prices, word of a cargo ship struck by an unidentified projectile near Oman pulled crude back up, Brent settling at $75.26 and WTI at $71.92. The event sits within a larger human story about a narrow waterway through which a fifth of the world's oil once flowed, and where, since the late-February attacks on Iran, the ordinary business of carrying energy to market has become a matter of trust and nerve. A preliminary understanding between Washington and Tehran had let ships begin moving again, and this attack leaves open t
Oil Rises Over 2% as Cargo Ship Attack Near Oman Revives Strait of Hormuz Supply Fears
Thousands were feared dead after two powerful earthquakes struck in and around Caracas, Venezuela, a separate development the article says could slow Venezuelan oil export plans.
The strike interrupted an effort to guide ships safely through Hormuz
Mark
Oil jumped over 2% in a day. Was that all about the ship?
Mimi
Not entirely. The strike near Oman paused the IMO's effort to escort ships through Hormuz, and that was the trigger. But analysts also pointed to technical buying and short-covering after a week of falling prices.
Luke
Worth separating those. The ship strike is reported, and the claim that Iran fired on it comes from two unnamed US officials speaking to Reuters. Iran's stated position was only that ships off designated routes can't be guaranteed security.
Mark
Why does Hormuz carry so much weight?
Mimi
Around 20% of the world's oil passed through it before the conflict. And shipments have been disrupted since the late-February US-Israeli attacks on Iran.
Luke
That 20% is a pre-conflict figure. Nobody here says what share moves through now.
Mark
The day before, prices had hit their lowest since February 27.
Mimi
Yes, because shipments through the strait had reached their highest level since the conflict began. So the market was pricing in recovery, and this knocked that confidence.
Luke
And Rystad's storage warning is one consultancy's assessment: Gulf tanks 50% to 60% full, a possible full recovery delayed to next year. It's a conditional, not a forecast of cuts.
Mark
What about Venezuela?
Mimi
Two earthquakes near Caracas, thousands feared dead. The article says it could slow export plans, which is a secondary point next to the human toll.
Luke
Feared dead, not confirmed. And how much it affects oil is unquantified.
Il Polso
- A cargo ship reportedly struck near Oman halted the effort to guide vessels safely through the Strait of Hormuz, and traders snapped back from a week of losses.
- US officials say Iran fired on the vessel, while Tehran warns that ships outside its designated routes cannot be guaranteed safe passage.
- The UN's International Maritime Organization paused its escort operation, and Secretary Rubio is rallying Gulf partners behind open, unrestricted navigation.
- Gulf storage tanks sit 50 to 60 percent full, so a prolonged closure could force production cuts, and the next moves depend on whether the US-Iran preliminary deal survives.
On a Thursday when oil markets were already weary from a week of falling prices, word of a cargo ship struck by an unidentified projectile near Oman pulled crude back up, Brent settling at $75.26 and WTI at $71.92. The event sits within a larger human story about a narrow waterway through which a fifth of the world's oil once flowed, and where, since the late-February attacks on Iran, the ordinary business of carrying energy to market has become a matter of trust and nerve. A preliminary understanding between Washington and Tehran had let ships begin moving again, and this attack leaves open the question of whether that fragile peace at sea can endure.
Oil climbed more than two percent on Thursday after a cargo ship was reportedly hit by an unidentified projectile near Oman. The strike interrupted an effort to guide commercial vessels through the Strait of Hormuz, and Brent settled at $75.26 a barrel while West Texas Intermediate finished at $71.92. The United Nations International Maritime Organization paused its operation to help ships transit the waterway, and two US officials later told Reuters that Iran had fired on the vessel. Tehran said it could not guarantee the safety of ships traveling outside its designated routes.
The day's rally came right after a sharp slide, when both benchmarks had closed at their lowest since February 27, following a surge in crude shipments through the strait. Analysts said the bounce was partly technical, as bargain buyers and short-covering met prices that remained oversold. Beneath that lies a tighter supply picture: Rystad Energy says Gulf storage is only half to 60 percent full, and a slow return of tanker traffic could force output cuts and push a full recovery into next year.
Diplomacy ran alongside the trading. Secretary of State Marco Rubio met Gulf allies and, together with the six-member Gulf Cooperation Council, called for unrestricted navigation without tolls. Iran, according to the Wall Street Journal, has estimated that charging for security services in the strait could bring in about $40 billion a year. Gasoline and diesel futures jumped, and separately, thousands were feared dead after earthquakes struck Caracas, a disaster that could slow Venezuela's plans to expand oil exports.
What comes next depends on whether ships can pass safely through Hormuz and whether the fragile US-Iran understanding holds. Every statement from Tehran, Washington, the Gulf states and shipping agencies will be watched closely in the days ahead.
Oil ended Thursday's session more than 2% higher after word spread that a cargo ship had been hit by an unidentified projectile near Oman. The strike interrupted an effort to guide commercial vessels safely through the Strait of Hormuz, and traders reacted quickly. Brent crude futures rose $1.52, or 2.1%, to settle at $75.26 a barrel, according to Reuters. US West Texas Intermediate climbed $1.58, or 2.3%, to finish at $71.92.
The incident forced the United Nations International Maritime Organization to pause its operation to help ships and seafarers transit the strait. Later in the day, two US officials told Reuters that Iran had fired on the vessel as it tried to pass through. Iranian authorities responded that the security of ships traveling outside designated Hormuz routes could not be guaranteed. The article describes the attack as reported, and the projectile's origin was initially unknown.
The waterway between Iran and Oman matters because, before the conflict began, around 20% of the world's oil supply moved through it. Shipments of oil and gas have been disrupted since the joint US-Israeli attacks on Iran at the end of February. A preliminary agreement between Washington and Tehran let traffic resume, but the new attack raised fresh doubt about whether that arrangement will hold.
The jump followed a sharp slide. A day earlier, both Brent and WTI had closed at their lowest levels since February 27, after crude shipments through the strait reached their highest level since the conflict started. Analysts said the rebound was not purely geopolitical. Gelber & Associates described crude as technically oversold after falling for more than a week, which draws in bargain buyers and prompts traders to close short positions. Both benchmarks, analysts noted, remain in oversold territory even after the rally.
The supply picture adds pressure. Rystad Energy said storage tanks across Gulf countries are about 50% to 60% full. If tanker traffic through Hormuz does not recover soon, producers there may have to cut output, and the consultancy said a full recovery of regional flows could slip into next year.
Diplomacy ran alongside the market moves. US Secretary of State Marco Rubio met Gulf allies during his Middle East trip and said any future deal with Iran would take regional partners' interests into account. The United States and the six-member Gulf Cooperation Council jointly backed free, unconditional and unrestricted navigation through the strait, and opposed tolls, fees or attempts to control the route. Rubio warned that threats to or blockage of commercial vessels would create serious problems for the international community. The Wall Street Journal reported that Iran has estimated charging for security, safety and environmental services in the strait could bring in about $40 billion a year.
The move spread to refined products: US gasoline futures rose about 5% and diesel about 4%. Separately, thousands were feared dead after two powerful earthquakes hit in and around Caracas, Venezuela. The article says the disaster could slow plans to raise Venezuelan oil exports, which the Trump administration had expected after the US captured President Nicolas Maduro in January. Slower Venezuelan growth could keep global supply tighter.
What happens next depends on whether ships keep facing threats in Hormuz or traffic normalizes and tensions ease. Statements from Iran, the United States, Gulf states and shipping agencies will be watched closely in the coming days.
Citazioni salienti
Two US officials told Reuters that Iran had fired on the cargo ship as it tried to transit the strait.— Reuters, citing two US officials
Iran said the security of vessels traveling outside designated Hormuz routes could not be guaranteed.— Iranian authorities
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