Oil hovers around $95/bbl as Middle East tensions escalate

Brent crude’s price has moved higher as more vessels come under attack in the Strait of Hormuz, further complicating commercial navigation through the crucial waterway.

IMAGE: Getty Images

Saudi Arabia’s Ministry of Foreign Affairs has condemned Monday’s attack on Saudi oil tanker Sidr in the Strait of Hormuz, killing two sailors.  

The vessel, owned by Saudi Arabia’s national shipping company Bahri, got caught in the crossfire as Tehran resumed a fresh barrage of drone strikes on US basses in the region.

“The kingdom stresses the need to halt escalation and respect the security and safety of international navigation,” the Saudi foreign ministry said in a statement on social media platform X.

Sidr was one of two vessels that came under attack off Oman’s coast on Monday, while attempting outbound transits through the strait, the United Kingdom Maritime Trade Operations (UKMTO) Agency reported earlier.

“UKMTO has received a verified report that a tanker was involved in a security incident resulting in two casualties,” the agency noted.

As of yesterday, nine vessels attempted to transit the strait – four inbound and five outbound – market intelligence provider Windward reported. Six vessels were operating with disabled AIS tracking transmitters.

In July, another Bahri-owned tanker, ⁠the Wedyan, came under an air attack while transiting the strait off Oman's coast, the Saudi foreign ministry said earlier.

US seems oddly optimistic

US President Donald Trump said Washington has “almost total control of the Hormuz Strait” and warned Tehran that any further retaliation will trigger a response “at a much harder and higher level.”

The US Central Command (CENTCOM) said it continues to implement a strict naval blockade of the region – choking the export channels via Iranian ports.

As of Wednesday, US forces had redirected 86 commercial vessels, disabled three, and boarded two to prevent ships from entering or departing Iranian ports, CENTCOM said on X.

Roughly 20% of global crude and LNG shipments transited the strait prior to 28 February, when the US and Israel launched a joint military operation against Iran.

Iran blacklists more tankers

Tehran escalated the conflict by launching missiles at US military assets in Iraq, Kuwait, Bahrain and the UAEyesterday, after Washington struck Iranian air defense systems and maritime assets a day earlier, local media reported.

The Islamic Republic has targeted 11 more vessels it deems as “non-compliant” – bringing the total number of blacklisted vessels to 56 now. These vessels will face penalties, including hefty fines, vessel seizure, or outright detention, the Persian Gulf Strait ⁠Authority (PGSA) said.

The list of vessels includes very large crude carriers (VLCCs), LNG and ​liquefied petroleum gas (LPG) tankers, and other petroleum product vessels, Reuters reported.

“Any vessel cooperating with listed ​vessels (via STS, transshipment, etc.) will be added to the list,” the PGSA said.

The US imposed sanctions on the PGSA in May, exposing entities paying fees or doing transactions with the Iranian body to the risk of action by the US Department of Treasury.

By Aparupa Mazumder

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