Oil prices, after initially erasing all wartime gains and dropping below the pre-war closing price of $72.48 a barrel on June 25, rebounded following reports of a ship attack in the Strait of Hormuz. West Texas Intermediate traded above $71 a barrel, and Brent crude closed near $75. Despite this recent uptick, oil is still on track for a third consecutive weekly loss, reflecting persistent uncertainty.
A cargo ship was reportedly hit by an unknown projectile near Dahit, Oman, causing damage to its bridge but no casualties or environmental impact. This incident occurred hours after several freighters turned around while attempting to transit the vital waterway. Two US officials suggested Iran fired on the ship, while Iran's Strait Authority warned that vessels outside its declared routes would not be guaranteed safe passage, calling the UN-backed route "unacceptable and completely dangerous."
In response to the attack, the UN International Maritime Organization (IMO) paused its operation to escort ships through the Strait of Hormuz. This initiative, launched just days prior, aimed to evacuate hundreds of stranded vessels using routes via Omani or Iranian waters with US oversight. The IMO's Secretary-General, Arsenio Dominguez, stated the pause was necessary to reconfirm safety guarantees for vessels on the evacuation list and in the region.
Traffic through the Strait of Hormuz had shown signs of recovery, with 125 vessels crossing last week, up from 33 the week before. US Energy Secretary Chris Wright noted that shipments were approaching pre-war levels, with at least 20 million barrels of oil exiting the waterway in the past 24 hours before the attack. However, the latest incident rekindles concerns about the long-term stability of Gulf oil flows and Iran's potential control over the Strait, which historically handles a fifth of the world's daily oil and liquefied natural gas supplies.
