Oil Prices Explode Past $110 as Iran's Hormuz Attacks Hit 12 Ships in a Week

Oil Prices Explode Past $110 as Iran's Hormuz Attacks Hit 12 Ships in a Week

Brent crude breaks $110 for the first time since May as attacks on shipping in the Strait of Hormuz reach record levels, threatening a waterway that carries one-fifth of the world's oil.

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Brent crude oil surged past $110 per barrel on Friday for the first time since May, as a record wave of attacks on ships in the Strait of Hormuz raised fears of tighter global supplies [264850][264472]. The international benchmark settled 3.7% higher at $109.86, while U.S. West Texas Intermediate (WTI) rose 3.5% to $101.41 [264850].

The Strait of Hormuz is a narrow waterway between the Persian Gulf and the Gulf of Oman through which about one-fifth of the world's oil passes [264360][259949]. Attacks on vessels near the strait have reached a record high, with 12 ships struck in a single week according to data from a UK maritime agency studied by BBC Verify [263778].

Iran says it is responding to a U.S. blockade of its ports and tougher sanctions imposed last month [264850]. A second supertanker exploded in the strait after striking a mine, Iran's Islamic Revolutionary Guard Corps (IRGC) reported [264619]. A separate tanker was damaged by an unidentified projectile, though all crew members were safe [259960].

Despite the dangers, oil continues to flow through the strait as shipping companies accept the risks because the route remains essential for global energy supplies [262641]. The threat has pushed transportation costs sharply higher, with operators facing much higher insurance and security expenses [262641].

The crisis has upended normal market rules. Fifteen-year-old oil tankers are now selling for more than brand-new ones as shipowners avoid vessels that take years to build and instead buy older ships available immediately for short, high-profit routes [263902].

Oil prices are on track for a second straight weekly advance, with mounting supply risks in the Middle East outweighing the impact of a fresh release of emergency reserves [263130]. Traders are also uncertain about how much diesel Russia can supply to the market, adding further pressure to prices [264850].

Iran says its military has prepared a "new operational plan" to respond to any fresh U.S. attacks, according to Mohsen Rezaei, secretary of Iran's Supreme National Security Council [265347]. The remarks signal that tensions between Iran and the United States remain high, with both sides watching for the other's next move [265347].

The price surge marks a sharp reversal for oil prices, which had cooled in recent months [264472]. Analysts said further gains would depend on supply decisions from major producers and the strength of the global economy [264472].

Sources

Oil surges past $110 as Middle East attacks threaten Hormuz supplies #264850Oil Shock: Brent Crude Breaks $110, WTI Tops $100 for First Time Since May #264472Oil prices jump as Iran attacks key shipping route #26436012 ships hit in a week: Hormuz attacks hit record high #263778Oil Still Flows Through Strait of Hormuz Despite Rising Ship Attacks #262641Second Supertanker Explodes in Hormuz Strait, Iran's IRGC Says #264619Mystery Missile Hits Tanker in Strait of Hormuz #259960Old tankers now cost more than new ones as Iran war disrupts shipping #263902Oil heads for second weekly gain as Middle East supply risks outweigh reserve release #263130Iran has a new plan if the U.S. attacks again #265347Iran rejects US reply on Hormuz terms #259949

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