Middle East inferno pushes oil higher

Brent crude’s price continues to trade above $90/bbl, as more commercial vessels come under air assaults.

IMAGE: Getty Images

Another commercial vessel came under attack while transiting the Strait of Hormuz yesterday, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.

The bulk carrier was struck by an “unknown projectile”, the UKMTO said. “The impact caused damage to the starboard side of the vessel and resulted in a crew casualty,” the agency added.

The movement of merchant ships in the region has dwindled again, with only 13 crossings recorded on Monday, according to market intelligence reporter Windward. Eight tankers went into the waterway, according to the data, and five exited it.

Meanwhile, the US Central Command (CENTCOM) said its navy continues to maintain a “steel wall blockade” against Iran. As of Monday, CENTCOM has redirected 64 commercial vessels, disabled three, and boarded two to prevent ships from entering or departing Iranian ports, it said on social media platform X.

Navigation through the waterway has decelerated further as hostile statements from Washington and Tehran intensify, with both sides showing zero appetite for returning to the negotiation table.

“Ships transiting the Strait of Hormuz continue to contend with threats,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

The recent development follows closely on the heels of the US-Iran 60-day truce expiring earlier this week, which broke down just days into July.

By Aparupa Mazumder

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