Oil Prices Surge to Highest Level Since July Amid Strait of Hormuz Attacks and US-Iran Stalemate
WASHINGTON:Global crude oil prices surged to their highest levels since July as attacks on vessels passing through the Strait of Hormuz and a lack of progress in US-Iran negotiations raised concerns over disruptions to global energy supplies.
According to international news agencies, Brent crude rose above $91 per barrel on August 18, while US West Texas Intermediate (WTI) approached $85 per barrel.
Reuters reported that Brent crude climbed for a third consecutive trading session, reaching $91.07 per barrel, while WTI stood at around $84.99. Other market reports put Brent as high as $91.60 per barrel.
The latest price surge followed a report by the British Maritime Trade Operations that a commercial vessel was struck by a projectile of unknown origin while leaving the Strait of Hormuz.
The incident reportedly damaged the vessel’s engine room, with reports that one crew member was killed or injured. Other crew members were rescued by the Omani Coast Guard.
The attack remains unexplained, as no group has claimed responsibility. Iran’s Islamic Revolutionary Guard Corps and Yemen’s Houthi movement have neither confirmed nor denied involvement, despite previously claiming responsibility for several attacks in the region.
### US-Iran Stalemate Fuels Market Concerns
Another major factor behind the rise in oil prices is the lack of progress in a ceasefire and negotiations between the United States and Iran despite the expiration 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 posture if negotiations fail.
Iran has maintained that the Strait of Hormuz will not be fully reopened until the United States fulfills the terms of an agreement, while Washington continues to pursue a policy of maintaining pressure on Tehran.
The situation has severely disrupted the transportation of petroleum products through the Strait of Hormuz and the Bab el-Mandeb, raising concerns about shortages of fuel and gas and putting further upward pressure on energy prices.
### Saudi Arabia Resumes Crude Loading
Meanwhile, Reuters reported that Saudi Arabia has resumed loading crude oil from within the Strait of Hormuz.
Saudi Aramco has begun using ship-to-ship transfers near Fujairah to move crude oil for Asian buyers. Between August 12 and 16, around 6 million barrels of Saudi crude were reportedly loaded onto three large oil tankers through the alternative arrangement.
However, the method is not considered a full replacement for normal oil shipments.
### Shipping Operators Avoid Key Routes
Security concerns have also prompted several major shipping operators to avoid the Strait of Hormuz and the Bab el-Mandeb.
Chinese state-owned shipping companies have reportedly limited operations through key maritime routes in the region and shifted some services toward alternative routes near Fujairah and Oman.
The continuing disruption has heightened concerns over global energy supplies, with any prolonged instability around the Strait of Hormuz likely to keep oil markets under pressure.
