Hormuz Attack Fears Send Oil Prices Soaring Amid Middle East Tensions
A new report of an attack on a ship in the Strait of Hormuz has added to concerns about Iran-related threats to energy supplies. The British navy-affiliated agency UKMTO reported that a projectile hit a vessel as it moved through the Strait, but details about the damage and crew status were unknown.
The incident comes amid rising tensions in the Middle East, with Saudi Arabia shutting down its East-West pipeline due to a drone attack that Riyadh and Baghdad said originated from Iraq. The pipeline has been a crucial route for global oil supplies, moving 4 million to 5 million barrels per day, which accounts for 4% to 5% of global supply.
US President Donald Trump blamed Iran for the attacks, while an Iranian official downplayed the chances of a breakthrough at a meeting with Gulf Arab states in Oman on Monday. The meeting aims to discuss issues including the Strait of Hormuz, but no signed agreement is expected.