Key facts
- Oil prices fell as tanker traffic resumed through the Strait of Hormuz.
- Over 50 ships utilized a new Omani corridor to bypass Iranian-designated lanes.
- Iran stated that safe passage through the Strait of Hormuz requires coordination with the country.
- War-risk premiums for Very Large Crude Carriers (VLCCs) have fallen to 2% of vessel value from 5%.
Oil prices fell Friday morning, heading for significant weekly losses, as concerns over supply eased with the resumption of tanker traffic through the Strait of Hormuz. This followed a jump of over 2% on Thursday after a cargo vessel was struck by an unknown projectile near Oman, an incident that prompted the UN's shipping agency to suspend its voluntary evacuation scheme. U.S. officials told Reuters that Iran fired on the cargo ship as it attempted to pass through the strait, while Iranian authorities stated that the security of vessels passing outside designated Hormuz routes is not guaranteed. Brent crude futures were down 0.25% to $75.07 a barrel, and U.S. West Texas Intermediate fell 0.18% to $71.79 a barrel as of 0055 GMT. More than 50 ships, including 14 crude and oil product tankers, have utilized a southern route around the Strait of Hormuz in the past three days, bypassing sea lanes designated by Iran. This temporary corridor was established under an International Maritime Organisation (IMO) and Oman-led plan. Seven Very Large Crude Carriers (VLCCs) and three Suezmaxes were among the vessels using the route. Eight additional South Korean vessels have also departed the Strait of Hormuz. Iran's Islamic Revolutionary Guard Corps (IRGC) warned against using any routes through the strait not officially designated by Tehran. War-risk premiums for VLCCs have fallen to approximately 2% of vessel value from around 5%, indicating reduced perceived risk. A total of about 115 vessels and 2,500 seafarers have been evacuated from the Strait of Hormuz since Tuesday, according to IMO secretary-general Arsenio Dominguez.