Fresh strikes on ships in the Strait of Hormuz drive oil prices higher

Three ships passing through the Strait of Hormuz have been hit in recent days, according to British maritime officials, in a renewed wave of attacks on one of the world's most important shipping routes. The incidents took place in the narrow waterway between Iran and Oman, where a large share of global oil shipments normally passes. Officials said the vessels were struck by unknown projectiles, and casualties were reported.

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The United Kingdom Maritime Trade Operations agency said the attacks resulted in two casualties. INTERCARGO, the association of cargo shipowners, said a sailor aboard the Liberian-flagged bulk carrier Minoan Dynasty was killed on Monday. The reporting did not identify the other casualty, and it was not immediately clear who carried out the strikes.

The attacks follow similar incidents in the same area in recent days. The disruption has added to concern among shipowners and energy markets. Brent crude futures rose to a three-week high after the attacks, climbing more than 3% over the past week to $US91.38 by 5:45pm AEST on Friday.

The Strait of Hormuz is a critical transit point for oil from the Gulf, and the reporting said roughly a fifth of the world's oil passed through it before the war. Shipping through the strait has slowed further in recent days, according to the supplied material. The latest strikes matter because the waterway is a global energy chokepoint, and even limited disruption can affect prices well beyond the region.

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The reported rise in Brent crude shows how quickly markets react when the safety of tankers and bulk carriers is called into question. The situation also comes as investors weigh the risk of wider instability in a corridor that links producers in the Gulf with buyers in Asia and elsewhere. The reporting also points to a broader political backdrop.

It said hostilities between Iran and the United States had eased in recent weeks, but that a string of attacks on vessels had unsettled investors. Iran's top negotiator, Mohammad Baqer Qalibaf, said on state media that the strait would remain shut until the United States met the conditions of an interim deal signed in June. Those conditions include lifting a blockade, removing oil sanctions, unfreezing Iranian assets and ending military threats, according to the report.

There are also signs that some commercial activity has continued despite the danger. The material says Saudi Aramco resumed loading oil from inside the strait last week, with Singapore and Malaysia cited as possible destinations. It also says the roughly 500 million barrels that usually flow through the strait each month have slowed to a trickle.

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