Global oil prices jumped by as much as 13% on Monday. This major spike comes after a round of intense joint United States-Israeli strikes on Iran triggered major concerns about global economic disruption of tanker traffic. Vessels travelling through the Strait of Hormuz have already been heavily impacted as attacks continue across the Middle East.
Multiple vessels in the area have received VHF transmission from Iran’s Revolutionary Guards that “no ship is allowed to pass the Strait of Hormuz”, an official with the European Union naval mission Aspides told Reuters.
The Strait of Hormuz is the narrow waterway between Iran and Oman. About 20% of global oil and gas supplies flow through this strait. Although Iranian authorities say it remains open to tankers, news reports indicate shipping is largely paused due to strike risks.
Brent crude jumped to $82 per barrel on the ICE exchange on Monday, marking a 14-month high amid the latest developments surrounding the passage, but has since retreated to around $79.5, according to a report by RT.
According to the United Kingdom Maritime Trade Operations Centre (UKMTO), two ships were attacked in the Strait of Hormuz on Sunday. At the same time, Oman’s Maritime Security Center reported that a United States-sanctioned tanker was struck off its coast earlier in the day.
The tanker association INTERTANKO said that the U.S. Navy had warned against navigation in the area. The warning is said to cover the whole of the Gulf, Gulf of Oman, North Arabian Sea, and the Strait of Hormuz, stating that the Navy can not guarantee the safety of shipping vessels and cargo.
In a note to clients, shipbroker Pten & Partners said that vessel traffic through the Strait of Hormuz has not completely stopped, but disruptions are building rapidly.
German container-shipping group Hapag-Lloyd said that it is suspending all vessel transit through the Strait of Hormuz until further notice. Services calling on ports in the Gulf may experience delays, rerouting, or schedule adjustments, the company said.
Prices of everything will likely skyrocket in the coming weeks as the war intensifies, and the ruling classes of the world force the crunch onto the everyday human just trying to get by.
Tanker Collision Near Strait Of Hormuz Amid GPS Signal Degradation
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