Oil prices climbed on Tuesday after an unidentified projectile struck a vessel transiting the Strait of Hormuz and Washington signaled it would not extend its ceasefire with Iran. Supertanker earnings on the Middle East-to-China route are nearing a two-month high as shipowners grow more cautious about the route.
Brent crude rose 0.5% to $91.30 a barrel by 04:27 ET on Tuesday. U.S. West Texas Intermediate crude advanced 1.0% to $85.31 a barrel over the same window. Brent also traded at $91.16, up 0.32% on the day, according to separate market data.
Projectile strike reignites Hormuz fears
The UK Maritime Trade Operations authority said a vessel was struck by an unknown projectile while transiting outbound in Hormuz. Iranian media separately showed Tehran claiming it had detained a tanker linked to the UAE for violating its rules in the strait.
President Trump reiterated that the United States maintains full control of Hormuz and that talks with Iran are ongoing, claims Iran has denied. He also said Washington would not seek an extension of the ceasefire deal signed with Iran in mid-June, which expired Monday. Iran and Oman have separately signaled they are discussing opening shipping routes through Hormuz, though neither country has announced a definitive agreement.
Traffic through the strait stays thin
Shipping data show commercial traffic through Hormuz remains at a fraction of pre-war levels, as fears of Iranian attacks continue to deter crossings. The strait supplied roughly 20% of global oil supplies before the conflict, and its disruption has sharply curtailed crude supplies.
Supertanker earnings near two-month high
The reduced pool of willing shipowners is pushing up freight costs. Assessed earnings for the Middle East-to-China supertanker route jumped to nearly $510,000 a day on Monday, the highest since late June, according to Baltic Exchange data, as Iran resumed striking vessels transiting the strait. Separately, the very large crude carrier Mongolia Prosperity is set to load crude from an unnamed Persian Gulf port for $31 million, or 570 Worldscale points, per shipping fixture reports.
Saudi Arabia is offering prompt deliveries from within the gulf, while Iraq is tapping the United Arab Emirates' national exporter to move barrels, at times with help from South Korean shipowner Sinokor Group. Mongolia Prosperity, operated by Sinokor, was booked by the shipping arm of a Chinese refiner to lift crude oil from the Persian Gulf on Aug. 21, with the charterer expected to cover the added war-risk insurance premium.
Sources: Investing.com, Oilprice.com, Rigzone.com
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