Oil Prices Drop Despite Hormuz Tanker Attack Amid Strong Exports

Oil prices declined despite a reported attack on a tanker in the Strait of Hormuz. The UK Maritime Trade Operations reported that a tanker was struck by an “unknown projectile,” a development that typically drives oil prices higher due to fears of supply disruptions. However, this time the market reacted differently.

The drop in oil prices came as Middle East crude exports climbed back to pre-war levels in late September, signaling that supply disruptions were not as severe as feared. This helped ease concerns about an immediate shortfall. As a result, WTI November futures fell 1.5% to $88.06 a barrel, and December Brent slid 2.2% to $98.07.

Other markets also reflected a cautious tone. US 10-year and 30-year Treasury yields edged down, and COMEX gold December futures rose 0.9% to $4,193.90 an ounce as expectations for an October rate hike cooled.

This shift suggests that headlines alone may not provide the usual lift to oil prices. Stronger export flows have acted as a counterweight, reducing the risk premium that typically supports near-term oil pricing. This means crude-options implied volatility and futures curve tightness may remain calmer than expected.