Oil: Two tankers "attacked" near the Strait of Hormuz

06/13/2019 | 09:42am

A major incident was reported this morning involving two supertankers, damaged near the Strait of Hormuz while tensions between Washington and Tehran remain high.

The first tanker hit belongs to Bernhard Schulte GmbH & Co, the ship was on its way to Singapore before being damaged, without causing any casualties according to the management. The second one belongs to the Norwegian company Frontline LTD and was reportedly hit by a torpedo off the United Arab Emirates. Again, according to maritime sources, there are no casualties to report. These incidents took place simultaneously at 06:12 and 07:00 local time respectively, further raising tensions in the region.

These events follow the sabotage of four oil tankers in the same region, where more than 20% of world oil flows pass through, which is the starting point for an intensification of geopolitical risks through an increase in the US presence in the Middle East.

Evolution of Brent barrel prices, in hourly data - source: Bloomberg

These frictions naturally impacted crude oil prices, with Brent rising by nearly 4.5% in a few hours to USD 61.7 per barrel.
Jordan Dufee
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