Red Sea oil tanker hit by a missile for the first time! Alternative waterways were blocked, and oil prices soared close to the 95 US dollar mark

The Zhitong Finance App noticed that crude oil prices soared sharply after Iran-backed Houthi militants said they had attacked two Saudi oil tankers in the Red Sea. The move intensified conflict in the Middle East and threatened deeper supply disruptions.

WTI crude rose nearly 2% and traded above $88 per barrel; in post-close trading, the price of Brent crude climbed sharply above $95. The rebel group said that since the two ships violated the blockade imposed in the Red Sea, the Houthis attacked them with missiles and drones, and confirmed that the two tankers were “Encelia” (Encelia) and “Layla” (Layla), respectively.

Just a few minutes before the Houthis issued their statement, the British Maritime Trade Operations Office (UKMTO) said that a ship was hit by flying objects southwest of Al Shuqaiq (Al Shuqaiq) on the Saudi Red Sea coast, causing a fire on board. UKMTO did not disclose the exact identity of the vessel.

The first attack on an oil tanker in the Red Sea opened a new front in the Middle East conflict. Following the intensification of violent clashes, the conflict has paralyzed shipping in the Strait of Hormuz. Over the past few days, Iran has frequently attacked ships in this narrow waterway, which is critical for exports to the Persian Gulf.

According to the US Central Command, the US military has launched air strikes against Iran for 12 consecutive days to further reduce its ability to pose a threat to commercial shipping in the Strait of Hormuz. Iran responded by attacking Kuwait, the latter bearing the brunt of its counterattack.

Both the US and Iran have lowered the prospects for peace talks, which increases the possibility of long-term hostilities, which in turn may lead to tighter supply in the oil market. Trump threatened to bomb bridges and power plants, and reiterated the threat of attacking “Pickaxe Mountain” (Pickaxe Mountain, a suspected site of Iran's nuclear facilities).

Earlier this week, the Houthis threatened to block Saudi shipping in the Red Sea. The waterway has become an important alternative export route that Saudi Arabia increasingly relies on to bypass the Strait of Hormuz, and the escalation of the situation threatens millions of barrels of crude oil supplies flowing to customers around the world every day.