Hormuz Attacks Send Tanker Rates to Records

A projectile reportedly struck a vessel transiting the Strait of Hormuz, while an Iranian commercial ship was also reported hit near Iran, killing one person and injuring three; damage to the first vessel and its crew’s condition remained unknown. Saudi Arabia temporarily closed its 1,200-kilometer East-West oil pipeline after a drone attack, disrupting a route that had carried roughly 4 million to 5 million barrels per day, or up to 5% of global supply; responsibility for the attack remained unconfirmed. Saudi Arabia also reported injuries and property damage from a Houthi projectile, amid competing claims and allegations involving Iran and Iraq. An Iranian Revolutionary Guard Navy official warned U.S. warships against approaching the strait and threatened an Iranian response. The incidents have intensified fears of prolonged disruption to Middle Eastern energy supplies, with Brent crude recently above $100 a barrel, supertanker rates reaching record levels—including nearly $800,000 per day from the Middle East to China—and natural-gas and LNG prices rising in Europe and Northeast Asia as inventories remain low and vessels reroute around conflict zones.