Oil prices rise after attacks on tankers near the Strait of Hormuz

Brent crude rose sharply on Wednesday after a series of attacks on fossil fuel tankers near the Strait of Hormuz disrupted traffic through one of the world's most important energy routes. The benchmark price climbed 5% to more than $78 a barrel, its steepest increase in nearly two months. The move came after attacks on at least three tankers within 48 hours, according to the supplied report.

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The incidents took place as vessels were transiting the narrow waterway between Iran and Oman, which is central to global oil and gas shipments. One of the targeted vessels was carrying about 8 million cubic feet of liquefied natural gas, a cargo described in the report as especially vulnerable to explosion. Ship-tracking data also showed at least four oil and gas tankers turning back rather than attempting the crossing.

The disruption has had immediate market effects beyond crude. European gas prices rose by about 5% after the ceasefire collapsed, with the Dutch benchmark increasing by more than €2.40 to €49 per megawatt hour and the UK equivalent rising to 116.75p per therm. The report said the renewed pressure on energy markets could feed through to household bills, winter heating costs and fuel prices if the disruption continues.

The Strait of Hormuz is a strategic chokepoint for global energy supplies, with the report noting that flows of about 20 million barrels of oil a day from Gulf producers have been affected by months of disruption. The latest attacks have raised concerns about whether shipping can resume normally and whether diplomatic efforts can prevent further escalation. The market reaction also reflects how quickly risk perceptions can change when tanker traffic is interrupted in the area.

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The report said the ceasefire deal with Iran was declared "over" after the attacks, and that the situation had already been fragile. It also noted that oil prices had previously fallen from highs of more than $110 a barrel in late May as more tankers were able to transit the strait amid hopes that talks would ease tensions. Analysts quoted in the report said tanker traffic through the strait had essentially stopped, underlining the scale of the disruption.

What remains unclear is whether the attacks will continue, how long shipping will stay reduced, and whether there is any immediate diplomatic path to de-escalation. The report said the next key test may come after the burial ceremony of Iran's supreme leader later this week. For now, traders and shippers are watching for any sign that vessels will resume transiting the strait and whether energy prices will keep rising.

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