Brent crude oil climbed to a one-week high on Tuesday after a projectile struck a fully laden Qatari liquefied natural gas (LNG) carrier near the Strait of Hormuz, reigniting concerns over the security of one of the world’s most critical energy shipping routes.
Brent crude rose 1.31% to $72.94 a barrel, recovering from recent losses as the attack raised fresh doubts about the durability of the U.S.-Iran truce aimed at safeguarding commercial shipping through the strategic waterway. The vessel was struck near Limah on the Omani coast while exiting the Strait of Hormuz, according to maritime security reports, though no casualties were reported.
The incident heightened concerns among shipowners and energy markets over the risk of renewed disruptions in the strait, which handles a significant share of global oil and liquefied natural gas exports. It also cast uncertainty over recent diplomatic efforts between Washington and Tehran to reduce attacks on commercial vessels transiting the region.
Despite Tuesday’s gains, oil prices remained close to their lowest levels since late February as expectations of stronger global supplies continued to weigh on the market. Investors have shifted their focus toward rising production from major exporters and signs that additional barrels will enter the market in the coming months.
Saudi Arabia intensified that pressure by cutting the August official selling price of its flagship Arab Light crude for Asian buyers to $1.50 per barrel below the Oman/Dubai benchmark, the deepest monthly discount in more than two decades, as it seeks to remain competitive in a softer market.
Meanwhile, OPEC+ agreed to raise production quotas again next month, while the United Arab Emirates has increased output above 3.8 million barrels per day following changes to its production arrangements, reinforcing expectations of improving global supply.
Over the past month, Brent crude has fallen 22.61%, reflecting easing geopolitical risk premiums and growing supply expectations. However, prices remain 3.97% higher than a year ago, underscoring the continued influence of geopolitical tensions on global energy markets.
