Global oil markets are now headed back towards $100 after a Kuwait-owned oil tanker was struck near the Strait of Hormuz.
At the time of press, Brent stood at $92/barrel.
The vessel, Kaifan, operated by Kuwait Oil Tanker Co. S.A.K., was hit while travelling through the Strait, according to security consultancy EOS Risk Group.
The United Kingdom Maritime Trade Operations (UKMTO) confirmed receiving a report of an incident involving a tanker around 8 nautical miles northeast of Limah, Oman.
According to UKMTO, the vessel reported via emergency communication channel that it had been struck by an unknown projectile. The ship’s security officer later informed authorities that the crew had abandoned the vessel and were aboard a lifeboat.
Tanker operators have largely avoided transiting the route since tensions intensified. The Strait of Hormuz handles a significant share of the world’s oil shipments.
With tanker movement falling to its lowest level in nearly two months, traders are increasingly concerned about supply shortages.
The situation worsened further after Yemen’s Houthis announced a naval blockade targeting Saudi Arabia.
The latest developments have pushed Brent crude prices back above $90 per barrel, with markets closely monitoring whether further disruptions could send prices toward the $100 per barrel mark.
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