New Hormuz ship attack report fuels fears over oil supplies

Reports of a ship attack in the Strait of Hormuz have raised concerns about potential disruptions to global oil supplies. The incident occurred a day after Saudi Arabia temporarily halted its East-West pipeline due to a drone attack from Iraq, likely originating from Iranian-backed militias. The British navy-affiliated agency UKMTO reported a projectile hitting a vessel, causing a fire and forcing evacuation of the crew.

This follows the recent attack on an Iranian commercial vessel off the southern coast of Iran, resulting in one death and three injuries.

The ongoing attacks in the escalating Middle East conflict could further drive up energy prices, following a week where Brent crude surged above US$100 per barrel. Saudi Arabia's 1,200-kilometer East-West pipeline, which has been transporting 4-5 million barrels of oil per day (4-5% of global supply), has been operating uninterrupted, sparing the country from the broader disruption affecting other Gulf oil and gas exporters.

While no immediate claim of responsibility has been made for the pipeline attack, US President Donald Trump attributed the strikes to Iran during his visit to Ireland. Saudi Arabia sought US military assistance against the Houthis, but Washington indicated it would not intervene directly, only offering intelligence support. The Houthis have seized the strategic island of Perim in the Bab el-Mandeb strait, a key shipping route between the Red Sea and the Indian Ocean.

Iran has declined to attend a meeting in Oman to discuss the future of the Strait of Hormuz, instead stating the gathering aims to address broader issues without guaranteeing an agreement.