Oil Prices Rise as Tanker Attacks Continue in Strait of Hormuz

Global oil prices have risen to their highest level since July as attacks on ships passing through the Strait of Hormuz continue and talks between the United States and Iran remain stalled.

According to international media reports, Brent crude oil prices crossed $91 per barrel on August 18, while US West Texas Intermediate (WTI) crude reached around $85 per barrel.

Reuters reported that Brent crude rose for a third consecutive trading session, reaching $91.07 per barrel, while WTI stood at around $84.99. Other market reports said Brent briefly reached around $91.60 per barrel.

Oil prices increased shortly after the British Maritime Trade Operations reported that a commercial vessel was hit by a projectile while leaving the Strait of Hormuz.

The incident damaged the ship’s engine room. Reports also said that one crew member was killed or injured, while other crew members were rescued by the Omani Coast Guard.

The attack remains unclear because no group has claimed responsibility. Iran’s Islamic Revolutionary Guard Corps and Yemen’s Houthis have neither confirmed nor denied involvement.

Another major reason behind the rise in oil prices is the lack of progress in ceasefire talks between the United States and Iran despite the end of a 60-day ceasefire period.

US President Donald Trump has refused to extend the ceasefire, while Iran has indicated that it could adopt a more aggressive military position if negotiations fail.

Iran has said the Strait of Hormuz will not be fully reopened until the United States fulfills the terms of an agreement. Washington, meanwhile, continues to maintain pressure on Iran.

The situation has badly disrupted the movement of petroleum products through the Strait of Hormuz and Bab el-Mandeb. This has increased concerns about fuel and gas supplies and pushed prices higher.

Saudi Arabia Restarts Oil Loading

Meanwhile, Saudi Arabia has reportedly restarted crude oil loading operations inside the Strait of Hormuz.

According to Reuters, Saudi Aramco has started using ship-to-ship transfers near Fujairah to move oil for Asian buyers.

Between August 12 and 16, around 6 million barrels of Saudi crude were reportedly loaded onto three large oil tankers using this method. However, the alternative arrangement is not a complete replacement for normal oil shipments.

Security concerns have also caused some major shipping companies to avoid the Strait of Hormuz and Bab el-Mandeb.

Chinese state-owned shipping companies have also reduced operations through key waterways in the region and started using alternative routes near Fujairah and Oman.