Oil rises to $74 after Hormuz tanker attacks

Global oil prices surged by more than two percent on Tuesday, driven by renewed fears of supply disruptions after attacks on commercial vessels near the Strait of Hormuz. This strategic waterway is one of the world's most critical energy shipping routes.

Brent crude futures climbed to $74 per barrel, while U.S. West Texas Intermediate crude saw a gain of $1.73, or 2.52 percent, reaching $70.28 per barrel. Traders are factoring in heightened geopolitical risks following reports that a Qatari liquefied natural gas tanker and a Saudi-flagged crude oil tanker were damaged near the strait.

Qatar has blamed Iran's Revolutionary Guards for allegedly firing missiles at the vessels transiting the waterway, though Iran has not publicly responded to the allegations. This incident revives concerns over the security of the Strait of Hormuz, which previously handled approximately one-fifth of global oil and LNG supplies before the outbreak of the U.S.-Iran war.

Analysts noted that the attacks have injected fresh geopolitical risk into oil markets and raised concerns among shipping companies about navigating the vital corridor. Andy Lipow, President of Lipow Oil Associates, stated that operators would need to reassess the risks of sending vessels through the strait, questioning the commercial viability of using the route.

The renewed hostilities occur amid fragile diplomatic efforts between Washington and Tehran. Iran's Foreign Minister indicated that negotiations would not proceed if the U.S. continued issuing threats. Despite the rally, some market watchers anticipate an improved global oil supply in the medium term, with Société Générale projecting a shift from a supply deficit to a surplus in late 2026 and throughout 2027. Saudi Arabia is also reportedly considering expanding its crude oil pipeline capacity to bypass the Strait of Hormuz if security concerns persist.

“

It’s clear that the risk remains, companies still had to determine whether it was commercially worthwhile to charter oil tankers through the route.