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Oil Prices Jump 2% After Hormuz Tanker Attacks
Global oil prices climbed more than 2% on Tuesday after attacks on commercial vessels near the Strait of Hormuz reignited fears of supply disruptions through one of the world’s most critical energy shipping routes.
According to Oilprice.com, Brent crude futures rose to $74 per barrel, while WTI crude gained $1.73 (2.52%) to $70.28 per barrel, as traders priced in heightened geopolitical risks.
Reports said a Qatari LNG tanker and a Saudi-flagged crude tanker were damaged after Iran’s Revolutionary Guards allegedly fired missiles at vessels transiting the strait. Qatar blamed Tehran, though Iran has not publicly responded.
The incident revived concerns over the security of the strait, which before the US-Iran war in February handled about 20% of global oil and LNG supplies. Any disruption could tighten global crude supply and raise energy costs.
Analysts noted the attacks injected fresh geopolitical risk into oil markets. Andy Lipow, President of Lipow Oil Associates, said operators would have to reassess the risks of sending vessels through the corridor. “It’s clear that the risk remains,” he added.
Diplomatic tensions remain fragile, with Iran warning talks with Washington would collapse if US threats continued. President Trump recently vowed to “finish the job” unless a deal was reached.
Despite the rally, Société Générale projected oil markets would shift from deficit to surplus in late 2026 and 2027, lowering its Q4 2026 forecast to $75 per barrel (from $83) and its 2027 average to $73 (from $79), while warning of continued volatility.
Saudi Arabia is reportedly considering expanding pipeline capacity to the Red Sea coast to bypass Hormuz, while Ukraine’s military claimed overnight drone strikes on eight Russian “shadow fleet” tankers, adding another layer of uncertainty to global energy markets.
