Two oil tankers were attacked near the Strait of Hormuz on Sunday. This incident has left two Indian seafarers missing. One tanker, a Suezmax carrying Iraqi crude, was hit by an unidentified projectile, causing a fire onboard. The other vessel, a product carrier, was struck by a drone, according to reports from Argus and the Indian shipping minister. The Indian government has started search-and-rescue operations off the coast of Oman for the missing crew members.
Key Details
India condemned the attacks and stressed the need for de-escalation and dialogue. The Indian foreign ministry stated, "Attacks on commercial vessels, seafarers and civilian infrastructure must cease." They called for safe passage of maritime commerce through international waters, in line with international law.
The Islamic Revolutionary Guard Corps (IRGC) has stepped up its attacks on vessels in the region. They are particularly targeting ships operating in dark mode. In response, the U.S. Navy has conducted strikes on Iranian-linked ships, raising shipping risks in the area. The IRGC warned that any ships that disable their navigation systems will be treated as hostile.
Background
Reports also mentioned a possible energy ceasefire between Russia and Ukraine. This development has added pressure to oil prices amid the ongoing conflicts.
These attacks are likely to raise tensions in the oil market. They may particularly affect shipping routes and insurance costs in the region. Investors might see increased volatility in oil prices, especially in Brent crude, as geopolitical risks rise.
Watch for updates on the search-and-rescue operations and any potential diplomatic efforts to address the growing tensions in the Strait of Hormuz.
Based on reporting by: oilprice.com, moneycontrol.com