Oil prices have climbed as traders closely monitor shipping movements through the Strait of Hormuz. This follows an incident where a vessel was struck by a projectile near the coast of Oman, raising market concerns over shipping security during US-Iran negotiations.
WTI crude rose over 2% after four consecutive days of declines, settling around $72 per barrel.
Brent crude gained approximately 2%. This global benchmark had previously given up all its gains made since the Iran conflict as shipping through the Strait of Hormuz resumed.
The UK Maritime Trade Operations (UKMTO) reported that an unidentified cargo ship was hit on its side while sailing southeast of Oman, resulting in damage to its bridge. The UKMTO advised vessels in the area to "transit with caution."
Media reports indicated the vessel was attacked by Iran, causing bridge damage but no casualties.
If Iran is confirmed to be behind the attack, it would deal a blow to the already fragile confidence of shipowners and crews, leaving them uncertain about safely transiting this crucial oil transport route again.
This incident occurred as several commercial ships attempting to pass through the strait turned back, sparking fresh doubts about when normal shipping conditions might be restored.
The International Maritime Organization (IMO), the UN's global shipping regulator, stated it is pausing its evacuation operations in the strait.
WTI crude for August delivery increased by 2.3%, settling at $71.92 per barrel.
Brent crude for August delivery rose by 2.1%, settling at $75.26 per barrel.
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