Oil Prices Rise Following Attack on Evacuation Plan in Strait of Hormuz

International Maritime Organization Closes Evacuation Plan Amid Renewed Violence in Strait of Hormuz

The International Maritime Organization (IMO) has paused its planned evacuation of ships stranded around the Strait of Hormuz following an attack on a cargo vessel in the waterway. The IMO’s decision came after the United States and Israel launched their military operation against Iran, which led to a sharp increase in oil prices.

As of 02:00 GMT, Brent crude futures for August delivery stood at $74.89 per barrel, a rise of up to 4% from the previous day’s closing price of $72.48. The attack on the cargo vessel, which occurred near the Omani coast, dealt a blow to hopes for a return to normal shipping in the region.

According to ship tracking platforms MarineTraffic and Kpler, 70 vessels transited the Strait of Hormuz on Wednesday, a more than twofold increase from the previous day. The United Kingdom Maritime Trade Operations (UKMTO) centre reported that the cargo vessel was struck by an “unknown projectile” while attempting to cross the strait.

Iran’s Persian Gulf Strait Authority has stated that any vessel attempting to use routes outside its designated framework would not be guaranteed safe passage. The authority emphasized that the consequences of such actions would fall on the owner, operator, and vessel commander.

The attack on the cargo vessel has raised concerns about the security of the passageway, with analysts noting the need for tankers to enter and offload high crude stocks in order to resume normal production.

Source: Al Jazeera