Commodities
Middle East Tensions Spark Oil Price Fears Amid Strait of Hormuz Attack
A reported 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, received reports of a projectile hitting a vessel as it moved through the strait.
The crew was evacuated by local authorities after a fire broke out following the attack. This incident came a day after Saudi Arabia said it had temporarily closed its East-West pipeline due to a drone attack that originated in Iraq.
The ongoing attacks in the Middle East could send energy prices even higher, with Brent crude surging back above $100 a barrel last week. The 1,200 km East-West pipeline has been moving around 4-5 million barrels per day, amounting to 4-5% of global supply.