Brent Hits $117 as Tanker Catches Fire in Strait of Hormuz
Oil prices rose to $117 per barrel after a tanker was attacked in the Strait of Hormuz, causing a fire on board. Tensions in the region remain high as Iran and the U.S. trade accusations regarding the security of the vital shipping lane.
Why it matters
Escalating conflict in the Strait of Hormuz threatens global energy supplies and could lead to significant volatility in oil markets.
Tensions in the Middle East are escalating again as a tanker was reported on fire after explosive devices were attached to its hull while the vessel was attempting to transit outbound in the Strait of Hormuz. The UK Maritime Trade Operations UKMTO, which is affiliated with the Royal Navy, said in a warning notice that it had received a third report on Thursday that a tanker transiting outbound was on fire 25 nautical miles northeast of Khasab, Oman, in the Strait of Hormuz. In a subsequent update, UKMTO said it had received "a verified report confirming the crew is safe, and there is no environmental impact." According to this report, the tanker was approached on the port side by a small boat which attached two explosive devices to the hull above the waterline. "The subsequent blasts resulted in a fire in the engine room which temporarily disabled the vessel.
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Oil Tanker Attacked With Explosive Devices in Strait of Hormuz
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