The key facts

  • Brent rose 0.2% to $91.71 per barrel, the American grade gained 0.1% to $86.12
  • The Iranian army said a tanker hit a mine in the eastern part of the strait; the IRGC earlier reported three burning tankers
  • India's shipping minister reported a Liberia-flagged tanker struck by a projectile: four injured, one of them an Indian citizen

Incidents in the Strait Support Prices

Oil prices are rising as investors monitor ongoing shipping disruptions in the Strait of Hormuz. In morning trading, Brent rose 0.2% to $91.71 per barrel, while the American benchmark grade gained 0.1% and stood at $86.12. Hopes for de-escalation of the war involving Iran are being overshadowed by attacks on vessels in the strait, which keeps the market tense.

Statements by the Iranian Military

The Iranian army said on Wednesday that an oil tanker hit a mine and caught fire in the Strait of Hormuz. A statement by the navy, read out on state television, said that the tanker, which had 'violated the rules,' caught fire after striking a naval mine 'in an unsafe, prohibited area in the eastern part of the Strait of Hormuz.' The day before, the Islamic Revolutionary Guard Corps said three oil tankers had caught fire in the strait. In recent weeks, Tehran has repeatedly reported vessel fires, often claiming they had struck mines.

Context of the Confrontation

Since the war in the Middle East began in late February, Tehran has sharply restricted traffic through the strategic waterway, insisting on the use of routes sanctioned by the Islamic Republic. In response, the United States imposed a naval blockade of Iranian ports and escorts tankers passing through the strait, through which about one fifth of the world's oil is normally shipped. The American military recently said that all mines in the strait had been neutralized, and US Central Command reported last month that since the summer it had helped Persian Gulf countries export 1.5 billion barrels of oil through Hormuz.

Tanker with Indian Crew Members

India's Shipping Minister Sarbananda Sonowal said that a Liberia-flagged tanker with Indian crew members on board was struck by a projectile in the gulf's waters. According to him, four crew members were injured, including one Indian citizen with minor injuries who was brought ashore for a medical examination; the remaining 18 crew members, including five Indians, are safe. It is unclear whether this tanker was among those reported by the Islamic Revolutionary Guard Corps.