Global oil prices climbed by more than two per cent on Tuesday after attacks on commercial vessels near the Strait of Hormuz renewed fears of supply disruptions through one of the world’s most critical energy shipping routes.
According to Oilprice.com, Brent crude futures rose to $74 per barrel, while the United States’ West Texas Intermediate crude gained $1.73, or 2.52 per cent, to $70.28 per barrel, as traders priced in heightened geopolitical risks.
Reuters reported that the rally followed reports that a Qatari liquefied natural gas tanker and a Saudi-flagged crude oil tanker were damaged near the Strait of Hormuz after Iran’s Revolutionary Guards allegedly fired missiles at vessels transiting the strategic waterway. Qatar blamed Tehran for the attack, although Iran had not publicly responded to the allegations.
The latest incident has revived concerns over the security of the Strait of Hormuz, which, before the outbreak of the US-Iran war in February, handled roughly one-fifth of global oil and LNG supplies. Any disruption to traffic through the narrow waterway could tighten global crude supplies and increase energy costs.
Analysts said the attacks had injected fresh geopolitical risk into oil markets.
