Strait of Hormuz Hostilities Resume, Oil Prices Rise on Renewed Tensions

The Strait of Hormuz has witnessed renewed hostilities, as two oil supertankers were struck by projectiles on Monday. According to maritime security consultant Marisks, the very large crude carrier Sidr, operated by Saudi Arabia's Bahri shipping company, was hit northeast of Khasab, Oman. The Senegal Prosperity, operated by South Korea's Sinokor Group, was struck by three projectiles while traveling east of Oman.

Both vessels were exiting the Persian Gulf when they were attacked. No one claimed responsibility for the strikes, which followed a resumption of tit-for-tat strikes between the U.S. and Iran earlier Monday. The U.S. had targeted Iranian rocket launchers that were preparing to send mines into the strait.

Oil prices rose Tuesday on concern that renewed fighting could derail the recent recovery in oil shipments through Hormuz. Brent crude traded about 1.7% higher at more than $92/bbl. A sustained return to hostilities could again disrupt crude flows through one of the world's most important oil transit routes and increase pressure on global energy prices.