Key facts
- A Kuwaiti oil tanker, the Kaifan, was struck by an unknown projectile in the Strait of Hormuz.
- The incident occurred near Oman, prompting the crew to abandon the vessel.
- Brent crude oil prices surpassed $90 per barrel following the event.
- Traffic through the Strait of Hormuz has significantly decreased due to ongoing hostilities.
- The incident follows multiple Iranian actions against vessels in the region.
Oil prices surged past $90 a barrel after a Kuwaiti-owned oil tanker, the Kaifan, was struck by an unknown projectile in the Strait of Hormuz, a critical Middle Eastern shipping lane. The incident, reported by security consultancy EOS Risk Group and the UK Maritime Trade Operations (UKMTO), occurred approximately 8 nautical miles northeast of Limah, Oman. The crew of the Kaifan has abandoned the vessel, though no environmental impact has been reported.
This event exacerbates already heightened tensions in the region, with tanker traffic through the Strait of Hormuz reportedly grinding to a halt. Tanker operators have largely ceased transits due to repeated Iranian attacks and harassment over the past week. Last week, Iran's Islamic Revolutionary Guard Corps Navy claimed to have intercepted four ships that had switched off their transponders.
The collapse in traffic through Hormuz has led to fears of supply shortages, particularly during peak summer demand. The regional security situation further deteriorated as Yemen's Iran-aligned Houthis declared a naval blockade on Saudi Arabia, impacting a key export route for the kingdom.