Oil holds firm as more vessels face drones in Hormuz

Brent’s price gains slightly following another vessel attack in the Strait of Hormuz.

IMAGE: Getty Images

Another merchant ship has been hit by an unknown projectile in the Strait of Hormuz, causing a small fire onboard, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.

The attack follows an earlier strike, about 9 nautical miles northeast, off Oman’s coast on Monday. Market intelligence provider Windward reported the vessel was a Liberia-flagged Aframax, loaded with 704,000 bbls of jet fuel.

The attack comes on the heels of persistent air assaults which target commercial navigation and defy mediation efforts by regional partners aiming to bring Washington and Tehran back to the negotiation table and reopen the vital shipping lane.

As of Wednesday, a total of 12 vessels crossed the Strait of Hormuz, consisting of seven inbound and five outbound transits. Of these, eight vessels were AIS-visible, according to Windward.

Vessel traffic in the region continues to remain well below pre-war average of 140 transits daily, Windward data suggests.  

The US has taken a break from continued air assaults on Iran now, deciding to opt for economic sanctions and trade isolation in a bid to pressurise Tehran to reopen the strait.

Meanwhile, Iran has retaliated by blacklisting 45 vessels, stating they would be targeted in the waterway if they violate Tehran’s regulations for transiting Hormuz, Reuters reported.

Qatari mediation talks rekindle

Oil prices felt some downward pressure, following news that Qatar’s Prime Minister, Sheikh Mohammed bin Abdulrahman bin Jassim al-Thani, is to travel to Tehran today to discuss measures to reopen the Strait of Hormuz, Reuters reported.

Details of the visit have not been made public, besides a comment from Iran’s foreign ministry spokesperson, stating that discussions will focus on Qatar’s role as a mediator between Washington and Tehran, the report added.

The development comes as Iran and Oman discuss reopening a temporary shipping corridor in the Strait of Hormuz, retaining joint control over the critical chokepoint.

By Aparupa Mazumder

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