(RTTNews) – Partially offsetting the losses from the three previous sessions, crude oil prices have surged on Thursday following attacks on Saudi Arabian tankers in the Red Sea by Houthis, which renewed Middle East tensions, while uncertainty over a deal on the Strait of Hormuz reopening fueled disruption concerns.
WTI Crude Oil for September month delivery was last seen trading up by $2.11 (or 2.81%) at $77.33 per barrel.
Since July 22, the Iran-backed Houthi militant group of Yemen has resumed attacking vessels in the Red Sea, targeting tankers linked to Saudi Arabia.
Aside from the Strait of Hormuz, the Bab el-Mandeb Strait between Yemen and the Horn of Africa, and the Suez Canal and pipeline links between the Red Sea and the Mediterranean Sea are the other two chokepoints for maritime traffic.
With the Strait of Hormuz yet to reopen fully, the major oil exporter of the gulf, Saudi Arabia, redirected its oil exports through its western ports since the U.S.-Iran conflict began on February 28.
The Houthis have proclaimed a naval blockade on Saudi Arabian vessels.
Yesterday, Houthi military spokesperson Yahya Saree stated that the group launched a ballistic missile attack on a Saudi Arabian oil tanker, Wafa, near Yanbu, the energy export hub of Saudi Arabia in the Red Sea which exports nearly 4 million barrels per day.
Later, the group targeted another Saudi-linked oil tanker, Daisy, in the Gulf using a ballistic missile.
Middle East tensions flared up once again after the latest Houthi attacks.
After calling for an international coalition for safe shipping in the gulf, Saudi Arabia is now reportedly evaluating military options against the Houthis.
Meanwhile, the U.S.-Iran conflict has not officially ended yet.
Late Tuesday, U.S. President Donald Trump reaffirmed that the talks with Iran are going on very nicely and reassured that the Strait of Hormuz will reopen soon. Separately, U.S. Secretary of State Marco Rubio and U.S. Treasury Secretary Scott Bessent echoed his views.
Today, speaking to Fox News, U.S. Vice President JD Vance acknowledged that negotiations with Iran remain “messy” despite some forward movement.
Calling Iranians extraordinarily difficult people to handle, Vance speculated that a deal could take some more time. He also stressed that some leaders in the ruling regime wanted an end to the conflict while some others wanted it to continue.
Meanwhile, Iran’s Foreign Ministry Spokesperson Esmaeil Baghaei announced that Iran and Oman have reached an understanding on the geographic coordinates for a shipping route through the Strait of Hormuz.
Baghaei also stated that a joint announcement is being finalized provided certain third parties do not interfere. Baghaei stressed that any agreement between Iran and Oman would not guarantee security in the strategic waterway.
Experts are viewing these developments with cautious optimism since the U.S. administration has insisted in the past, not to give away the management of shipping traffic over the Strait of Hormuz to Iran.
A survey by Bloomberg revealed that despite the disruption caused due to the U.S.-Iran war, the Organization of Petroleum Exporting Countries increased supplies by 1.16 million barrels a day in July to an average 19.44 million barrels per day.
Observable shipping traffic across the Strait of Hormuz remained subdued owing to threats to vessels from attacks by Iran as well as sea mines placed earlier by Iran.
Reuters quoted Kpler’s data to state that only two vessels transited the strait on Wednesday. Kpler reported that eight ships passed through on Tuesday. Windward recorded 12 vessels transiting on Wednesday.
Aside from concerns over the delay in resumption of shipping traffic, shipowners are also anxious about the possibility of a toll being imposed on ships sailing through the strait.
A coalition of international shipping industry associations sent a joint letter to U.N. Secretary-General Antonio Guterres and International Maritime Organization Secretary-General Arsenio Dominguez against any fee collection.
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