Middle East conflict: Oil prices spike again as more vessels set ablaze in the Persian Gulf

Crude oil prices have once again surpassed the $115/bbl threshold amid continued vessel attacks in the Persian Gulf and escalating tensions in Saudi Arabia.

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The United Kingdom Maritime Trade Operations (UKMTO) agency reported that a vessel caught fire in the Strait of Hormuz yesterday, approximately 25 nautical miles northeast of Khasab, Oman.

A third party reported that the outbound vessel caught fire while transiting the strait. “Status of crew, damage assessment, and environmental impact are unknown at present,” the UKMTO said.

Another oil tanker was struck by an unknown projectile while completing an outbound transit of the Strait of Hormuz yesterday, the UKMTO said in a separate report.

A handful of five vessels crossed the Strait of Hormuz on Wednesday – all outbound, according to market intelligence provider Windward. Three of these vessels moved in dark mode. Before the war, an average of 129 vessels/day crossed the strait in February, according to UN Trade and Development.

Houthis continue to target Saudi energy infrastructure

Yemen’s Iran-aligned Houthi militants have claimed a total of six attacks on Saudi Arabian oil infrastructure and airport facilities over the past day.

The Houthis have claimed to hit the Ras Tanura refinery with a ballistic missile once again – marking two major attacks in a week.

With an average production capacity of 550,000 b/d, the Ras Tanura complex serves as both a major refining hub and a critical Persian Gulf export artery, according to market analysts.

Additionally, the Houthis have claimed to strike Saudi Arabia’s state-owned oil company Aramco’s facility in Abqaiq and the Rabigh oil refinery with missiles, the group’s official spokesperson Yahya Sare’e said on social media platform Telegram.

The escalation comes despite the bilateral meeting between senior Saudi and Iranian officials in Tehran earlier this week, where both sides pledged to resolve regional disputes through diplomacy.

By Aparupa Mazumder

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