New Report of Attack on Strait of Hormuz Shipping Raises Fears Over Oil Supplies

Maritime trackers received new reports on Sunday of an attack on a ship in the Strait of Hormuz, adding to concerns over Iran-related threats to global energy supplies after Saudi Arabia temporarily shut down a vital oil pipeline.

The British navy-affiliated United Kingdom Maritime Trade Operations (UKMTO) agency said it had received a report that a projectile struck a vessel while it was transiting the strait. As of early Sunday, the extent of the damage and the condition of the crew were unknown, the agency said.

The UKMTO report came a day after Saudi Arabia said it had temporarily closed its East-West pipeline as a precaution following a drone attack that both Baghdad and Riyadh said originated in Iraq, where Iranian-backed militias operate.

Continuing attacks amid the widening Middle East war could push energy prices even higher after Brent crude prices surged back above $100 a barrel over the past week.

The 1,200-km (745-mile) East-West pipeline, which runs across the Arabian Peninsula, has served as the main route for Middle Eastern oil supplies to reach global markets over the past six months while the Strait of Hormuz has remained largely closed because of the war.

The pipeline had been carrying between 4 million and 5 million barrels of oil per day, equivalent to around 4% to 5% of global supply. This helped Saudi Arabia avoid the worst of the disruption that has severely affected other Gulf oil and gas exporters.

There was no immediate claim of responsibility for the attack on the pipeline. Satellite imagery showed black smoke rising from an area of the pipeline south of Medina. Saudi Arabia's Foreign Ministry said the attack caused some injuries and damage that was still being assessed, but it did not provide details on the impact on oil exports.

U.S. President Donald Trump, who was visiting Ireland to attend a golf tournament at one of his resorts, said Iran was probably responsible for the attack.

On Saturday, Saudi Civil Defence said a projectile fired by the Houthis injured two people in the Jazan region and damaged several buildings, including a mosque.

Meanwhile, Iranian state media reported that an Iranian commercial vessel was struck off the country's southern coast early Sunday, killing one person and wounding three others. No further details were immediately provided.

Source: Reuters