Oil Prices Rise After Attack in Strait of Hormuz Halts Evacuation Plan

International Oil Prices Rise Amid Attack on Cargo Ship in Strait of Hormuz

The price of Brent crude oil has increased by as much as 4% following an attack on a cargo vessel in the Strait of Hormuz. The International Maritime Organization (IMO) has paused its planned evacuation of ships stranded in the area, citing renewed violence in the region.

According to ship tracking platforms MarineTraffic and Kpler, 70 vessels transited the waterway on Wednesday, a more than twofold increase from the previous day and the highest daily figure since March 1. The attack on the cargo vessel, which occurred near the Omani coast, was reportedly carried out by an “unknown projectile” on its starboard side.

The IMO has stated that any vessel attempting to use routes outside its designated framework would not be guaranteed safe passage. Iran’s Persian Gulf Strait Authority has also issued a statement warning of potential consequences for vessels using unauthorized routes.

As a result, oil prices have risen, with Brent futures for August delivery standing at $74.89 per barrel as of 02:00 GMT. This represents a significant increase from the previous day’s closing price of $72.48. The price of Brent crude is currently about 3% above its pre-war level.

Asian markets opened lower on Friday, with key indices in Japan, South Korea, Hong Kong, and Taiwan experiencing steep losses. The attack on the cargo vessel has dealt a blow to hopes for a return to normal shipping in the region after a recent resurgence in traffic.

Source: Al Jazeera