Key facts
- A Qatari LNG tanker, the Al Rekayyat, was at risk of exploding after being hit on its port side.
- A Saudi crude tanker, the Wedyan, was damaged off Oman's coast.
- The U.S. Joint Maritime Information Center raised the threat level for the Strait of Hormuz to 'severe'.
- The White House revoked a license allowing Iran to sell oil, a move tied to easing tensions.
- Oil prices, specifically Brent crude, increased by nearly 6% following the attacks.
Maritime authorities have elevated the threat risk for vessels transiting the Strait of Hormuz to 'severe' following attacks on a Qatari liquefied natural gas (LNG) tanker and a Saudi crude oil tanker. The incidents, which occurred on Tuesday, sent oil prices higher and disrupted a fragile detente between Washington and Tehran. The U.S. White House responded by revoking a license it had granted Iran to sell oil, an effort to ease tensions that was put in place in late June.
The Qatari LNG tanker, identified as Al Rekayyat, was reportedly hit on its port side and was at risk of exploding due to a fire in its engine room, though its crew was safe and being evacuated. Qatar's Foreign Ministry stated that Tehran bore full legal responsibility for the attack and summoned the deputy Iranian ambassador to protest. The Saudi-flagged supertanker Wedyan was also damaged off Oman's coast. Saudi Arabia's Foreign Ministry condemned the attacks and held Iran fully responsible.
The U.S. Navy-led Joint Maritime Information Center (JMIC) cited deliberate hostile action as the reason for raising the threat level to 'severe', the first time it has been set at that status since June 15. JMIC advised mariners to expect continued naval presence, congestion, and more intense hailing by the Islamic Revolutionary Guard Corps. It remains unclear if these attacks will lead to a full interruption of shipping traffic through the strait, which previously handled about one-fifth of the world's oil and gas supplies.
Oil prices saw a significant increase, with Brent crude nearing $76 a barrel, up nearly 6% in post-market activity. Analysts noted that the attacks and the revocation of the oil sales waiver signal that the recent ceasefire is less durable than the market had assumed. Traffic through the strait has been spotty, ranging between one-third and one-fifth of its pre-war levels, with only about 16 vessels transiting on Tuesday, the lowest in nearly three weeks.