Tankers Struck Near Strait of Hormuz as Oil Price Slowly Climbs Again
Commercial vessels came under fire near the Strait of Hormuz as Iran's IRGC reportedly launched missiles at two tankers, threatening to derail already-stalled peace negotiations between Washington and Tehran.
WTI oil price climbs to above $70 on Tuesday morning session, while Brent trades at $74, as commercial vessels came under fire near the Strait of Hormuz on Monday night, threatening to destabilize already-faltering peace negotiations between Washington and Tehran.
The United Kingdom Maritime Trade Operations reported on how a commercial tanker caught fire off Oman's coastline after being struck by an "unknown projectile". Separately, Iran's Islamic Revolutionary Guard Corps launched at the minimum of two missiles at commercial ships that transit in the strategic waterway, inflicting significant damage on two vessels without casualties.
Three unnamed sources told Reuters the targeted ship was the Al Rekayyat, a Qatari LNG tanker. The crew survived, but the vessel may face explosion risk due to an engine room fire. A second ship, reportedly a Saudi-flagged crude oil tanker, also became a victim in these strikes.
The incidents arrive as indirect US-Iran talks concluded in Qatar last week with no visible progress toward a permanent accord, despite a June 14 memorandum of understanding that paused hostilities for 60 days. A central sticking point remains the governance of the Strait of Hormuz, which Iran officially closed after US and Israel initial strikes on February 28.
Previously, roughly 120 to 140 vessels crossed the strait daily, carrying approximately 20 percent of global oil and gas supplies. Traffic went down to as low as two tankers per day at the conflict's peak, though recent data from analytics firm Kpler showed 108 verified crossings over the past weekend, which was considered a sign of gradual recovery.
President Trump renewed threats on Monday, warning, "We're either going to make a deal or we're going to finish the job." Iran's Foreign Minister Abbas Araghchi fired back that negotiations on a permanent arrangement will not commence if threats continue.
Analysts suggest Tehran may be leveraging control over the waterway to extract concessions. Mohsen Milani of the University of South Florida noted that Iran appears to be "weaponising Hormuz geographically to bolster its bargaining power."
Related assets: Crude Oil, Brent Crude