(RTTNews) – Crude oil prices have soared on Tuesday as concerns of a fresh U.S.-Iran exchange of attacks surfaced following incidents involving projectile attacks on at least three tankers sailing across the Strait of Hormuz.
WTI Crude Oil for August month delivery was last seen trading up by $2.01 (or 2.93%) at $70.56 per barrel.
According to the U.K. Maritime Trade Operations center, today three tankers were hit by projectiles while traveling across the Strait of Hormuz.
In the first attack, a Qatari tanker Al Rekayyat loaded with Liquified Natural Gas, sailing south along the Omanian waters was struck on its port side by an unknown projectile, nearly eight nautical miles east of Limah in Oman. The strike ignited a fire but no casualties or environmental impact were reported.
Iran’s state media reported that the vessel came under attack after it ignored warnings but Iran did not claim responsibility for the assault officially.
Citing two U.S. officials, Axios reported that Iran’s military fired at least two missiles at commercial ships navigating the Strait of Hormuz last night.
According to Associated Press, one more oil tanker was hit on its left side while exiting the Omani-Emirati border while the other was struck by a drone off Oman. The two vessels sustained only minor damages and continued to navigate to their respective destinations.
Following these attacks, the UKMTO called on all vessels to sail with caution and immediately report any suspicious activity.
On June 17, the U.S. and Iran entered a Memorandum of Understanding and agreed to halt their mutual attacks for a 60-day period.
Soon after the signing, the Strait of Hormuz was reopened by Iran and shipping traffic resumed across the Persian Gulf, easing crude oil and energy supply-related concerns.
Kpler reported that over the last weekend, nearly 108 ships crossed through the strait from various routes.
Iran had been insisting that all tankers should navigate only through Iran-chartered sea routes across the strait and wanted the vessels to coordinate with Iran’s Islamic Revolutionary Guards Corps, failing which it warned of a forceful response.
U.S. leaders have been voicing differently, stating that the Strait of Hormuz is free for all international ships now and shall remain so even after a deal with Iran is finalized.
A preliminary round of initial talks between the U.S. and Iran was held in Qatar last week. Negotiators from both nations hailed that the talks progressed well.
The next round is slated to be conducted after the burial of Iran’s slain leader Ayatollah Ali Khamenei which is scheduled for Thursday.
The war-premium associated with crude oil diminished since June 17.
Saudi Arabia’s Aramco slashed the price of its flagship Arab Light Crude for its Asian buyers by $11 from August, at nearly a $1.50 discount to the regional benchmark.
On Sunday, the member-nations of the Organization of Petroleum Exporting Countries agreed to raise their production quotas from August by 188,000 barrels per day.
Iran ramped up its crude oil exports since June 17 after the U.S. temporarily lifted its sanctions on Iranian oil and ended its naval blockade on Iranian ports. Vortexa reported that since then, Iran’s export volume rebounded to reach a single-day peak of nearly 8 million bpd.
In two separate incidents recently, a Singapore-flagged vessel and another Panama-flagged ship were struck by unidentified projectiles. The strikes sparked a brief exchange of fire between the U.S. and Iran for a couple of days.
Today’s projectile attacks renewed tensions in the Middle East as traders are concerned of a widespread disruption if the U.S. opts to respond strongly.
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