Hormuz Attack Sparks Fears of Energy Price Surge

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 UKMTO, a British navy-affiliated agency, said it had received a report of a projectile hitting a vessel as it moved through the strait. The amount of damage and the status of the crew were unknown at the time.

The incident comes after Saudi Arabia temporarily closed its East-West pipeline as a precaution following a drone attack that both Baghdad and Riyadh said originated in Iraq, where Iranian-backed militias operate. Ongoing attacks in the widening Middle East war could send energy prices even higher after a week that saw the cost of Brent crude surge back above $100 a barrel.

Saudi Arabia's de facto ruler, Crown Prince Mohammed bin Salman, has asked for US military help fighting the Houthis, and President Donald Trump confirmed he had spoken to the crown prince. However, Washington is facing a dilemma over whether to help the Saudis fight the Houthis, risking further expansion of the war.