Oil prices experienced a brief uptick on Thursday, with Brent crude touching session highs above $75 a barrel, after an unidentified cargo ship was struck by a projectile near Oman. This incident followed several freighters turning around while attempting to navigate the Strait of Hormuz, raising concerns about the security of the vital waterway. The UK Maritime Trade Operations (UKMTO) advised vessels to transit with caution after the Singapore-flagged cargo ship sustained damage to its bridge.
Despite the attack, crude oil exports from the Persian Gulf have rebounded significantly, reaching 75% of pre-war levels after the US and Iran signed an interim peace deal last week. This recovery marks a remarkable rebound following one of the biggest shipping disruptions in decades. Oil prices had earlier dipped below their pre-war level of just under $73 per barrel, signalling market confidence in an improving situation.
However, the attack led the International Maritime Organization (IMO) to pause its evacuation operations in the Strait of Hormuz. The UN agency's Secretary-General, Arsenio Dominguez, stated that the evacuation plan would be on hold until safety guarantees for ships could be confirmed. Iran's Revolutionary Guards warned vessels to stick to routes designated by Tehran, calling other routes "unacceptable and completely dangerous" and stating no ships are allowed to transit without its permission. This comes after Oman, in coordination with the IMO, announced temporary shipping lanes.
