Hormuz Attack Raises Fresh Fears for Global Oil Supplies

Concerns over global oil supplies intensified on Sunday after a vessel was reportedly struck while transiting the Strait of Hormuz, a day after Saudi Arabia temporarily shut its major East-West pipeline following a drone attack linked to Iraq.

The UK Maritime Trade Operations agency said a projectile struck the vessel as it passed through the strategic waterway. Authorities had not immediately provided details about the extent of the damage or the condition of the crew.

The incident has added fresh pressure to energy markets. Brent crude prices had already climbed above $100 a barrel last week as the conflict continued to disrupt regional energy infrastructure and shipping routes.

The Strait of Hormuz remains a crucial passage for global energy trade. Prolonged disruption to the waterway has increased the importance of alternative export routes for Gulf oil producers, raising concerns about the potential impact on international supplies and prices.

Those concerns deepened after Saudi Arabia shut its 1,200-kilometre East-West pipeline following a drone strike. The pipeline can transport roughly 4 million to 5 million barrels of crude per day, equivalent to around 4% to 5% of global oil supply.

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Saudi Arabia and Iraq said the drone attack originated in Iraq, where Iran-backed armed groups operate. Saudi authorities reported injuries and damage but did not immediately specify how the incident had affected oil exports.

The widening conflict is also putting pressure on another major maritime route. Iran-aligned Houthi forces reportedly seized Yemen’s Perim island on Friday, according to four Yemeni government sources. The island is located near the Bab el-Mandeb Strait, a key gateway between the Red Sea and the Gulf of Aden.

Saudi Crown Prince Mohammed bin Salman also asked US President Donald Trump for military assistance against the Houthis, according to three sources cited by Reuters. Washington has so far declined direct intervention but offered intelligence support.

Trump confirmed that he had spoken with the Saudi leader and said the Houthis had contacted his administration, asking Washington not to enter the conflict directly.

Attention is now shifting to Oman, where Iran is expected to meet Gulf Arab states on Monday for talks over the future of the Strait of Hormuz. The discussions are expected to focus on proposals concerning the movement of commercial vessels through the strategic waterway.

However, expectations for an immediate breakthrough remain limited. Iranian parliament National Security Committee chief Ebrahim Azizi said negotiations would have little value unless Washington accepted Tehran’s conditions.

Iran has also indicated that the strait would not fully reopen until its demands are met, leaving international markets facing continued uncertainty over one of the world’s most important energy corridors.