Oil prices fell by more than 2% on Wednesday following an incident off the coast of Oman, where a cargo ship was struck by an unknown projectile. Brent crude futures declined $1.50 (1.99%) to $73.76 per barrel, while U.S. West Texas Intermediate crude fell $1.49 (2.07%) to $70.43 per barrel. The drop reflects a weekly decline approaching almost 8%.
The attack occurred on June 25, causing damage to the ship’s bridge but with no casualties reported. Analysts noted that oil prices had fallen to their lowest level since February 27 as shipping through the Strait of Hormuz resumed after congestion eased.
This week marked the highest volume of ships passing through the Strait of Hormuz since the beginning of the conflict between the United States and Israel with Iran in February, which was facilitated by a ceasefire agreement. ING analysts stated that the increase in traffic is primarily due to previously blocked vessels being released from the strait. They warned that after these tankers leave the area, shipping volumes could decrease.
“Ship flows to the Persian Gulf remain much more modest,” the experts cautioned. “This suggests that after the stuck tankers leave the water area, we may see a rollback in volumes.”
