Sudden sharp surge! Major news from the Strait of Hormuz! Another tanker attacked!

The Strait of Hormuz and its surrounding waters are experiencing new incidents!

According to the latest reports, the UK Maritime Trade Operations Office announced on the 17th that a tanker anchored in the Gulf of Oman was attacked by an unidentified projectile.

The day before, the Shah natural gas field in the UAE caught fire due to a drone attack, causing operations to halt, and officials are assessing the damage. Additionally, a oil field in Iraq and an important port in the UAE were also targeted by drone and missile attacks.

Meanwhile, there is significant news from the Strait of Hormuz. Germany, Italy, Australia, Belgium, and other countries have stated they will not participate in escorting ships through the Strait.

During today’s trading, international oil prices surged sharply, with WTI crude rising over 5% and Brent crude over 4%. As of the time of this report, WTI crude increased by 5.35% and Brent crude by 4.65%, trading at $97.41 per barrel and $104.87 per barrel, respectively.

“Risks remain severe: just one Iranian militia firing missiles or laying mines on passing oil tankers is enough to escalate the situation again,” said IG Market Analyst Tony Sicomore in a report. Senior Market Analyst Priyanka Sahdevwa from Philip Nova stated that currently, the oil market is focused on the duration of the conflict, supply disruptions in the Strait of Hormuz, and the potential damage to Gulf region oil infrastructure caused by this chaos.

Oil Tanker Attacked

According to CCTV News, the UK Maritime Trade Operations Office said on the 17th that a tanker anchored in the Gulf of Oman was attacked by an unidentified projectile. There were reports of minor structural damage, but no injuries.

The office stated in a statement that the incident occurred 23 nautical miles east of Fujairah, UAE (about 42.6 km), with no environmental pollution reported. No further details were provided.

According to foreign media reports, on Monday, the Shah natural gas field in the UAE caught fire due to a drone attack, halting operations, and officials are assessing the damage. Additionally, an oil field in Iraq and a key port in the UAE were also targeted by drones and missiles.

The media office of Abu Dhabi reported that authorities have controlled the fire at the Shah high-sulfur gas field in Abu Dhabi’s Rubhali Desert. No injuries have been reported.

Furthermore, an Iraqi Petroleum Ministry spokesperson stated that the Majnoon oil field in southern Iraq was attacked, but no additional details were provided.

Amidst the expansion of conflict in Iran leading to rising energy costs and potential inflation pressures, the Reserve Bank of Australia raised interest rates for the second consecutive meeting on Tuesday, intensifying efforts to combat stubborn inflation.

The bank increased the cash rate from 3.85% to 4.1%, marking the first back-to-back rate hikes since mid-2023. The policy statement noted that the nine-member policy committee decided to tighten monetary policy by a vote of 5 to 4.

The statement said, “The situation in the Middle East remains highly uncertain, and in various scenarios, it could exacerbate global and domestic inflation. Accordingly, the committee considers that inflation may remain above target for some time, with risks further skewed to the upside, including inflation expectations.”

Following the announcement, Australian government bonds continued to rise, and the Australian dollar declined. The yield on 3-year Australian bonds fell by 8 basis points to 4.51%, from 4.56% before the decision. The AUD/USD exchange rate dropped 0.1% to 0.7065, after being at 0.7083 prior to the announcement.

Philippine Finance Secretary Frederick D. Go said that if oil prices continue to rise, the central bank may tighten monetary policy next month. In an interview on Tuesday, Go stated, “If oil prices stay high, the Monetary Board is very likely to consider tightening policy at the next meeting.”

Frederick D. Go is a member of the Bangko Sentral ng Pilipinas’s Monetary Board, with the next policy meeting scheduled for April 23. The rate hike would mark a sudden shift in the Philippines’ monetary policy. The central bank had just cut borrowing costs by 25 basis points at its February meeting to support economic recovery.

Multiple Countries Say They Will Not Participate in Hormuz Strait Escort

According to CCTV News, since the US and Israel launched military strikes against Iran, shipping through the Strait of Hormuz has nearly come to a halt. US President Trump plans to announce the formation of a so-called “Hormuz Alliance” to control the strait and pressure European, Asian, and Gulf countries to send warships.

However, so far, many countries have taken a cautious stance or outright refused, with no nation publicly responding to the US call.

EU High Representative for Foreign Affairs and Security Policy Josep Borrell said in Brussels on the 16th that “this is not Europe’s war.” He also stated that EU member states have no intention of expanding the existing “Shield” maritime escort operation to the Strait of Hormuz. Borrell emphasized that the EU’s current focus is on shipping safety in the Red Sea and surrounding waters, and that diplomatic efforts should be used to de-escalate regional tensions.

German Chancellor Olaf Scholz on the 16th said Germany would not participate in military operations to protect tankers in the Strait of Hormuz, emphasizing that NATO is a “defense alliance,” not an “intervention alliance.”

Scholz, during a meeting in Berlin with visiting Dutch Prime Minister Mark Rutte, said that the Iran conflict is not a NATO matter. He also stated that so far, no feasible plan has been seen to make such actions successful.

Italy also refuses to participate in military operations in the Strait of Hormuz. On March 16, Italian Prime Minister Giorgia Meloni said that Italy’s current role is to strengthen EU escort operations in the Red Sea, as the situation in the Strait of Hormuz is clearly more complex, implying a further step toward involvement in the conflict.

Meloni stated that freedom of navigation is crucial for Italy, but military intervention in the Strait of Hormuz objectively means moving further into the conflict. Italian media interpreted this as Meloni’s refusal to participate in military actions in the Strait.

On the 16th, Belgian Prime Minister Alexander De Croo publicly stated that the Belgian government’s position is that Belgium will not participate in US military operations in the Strait of Hormuz. De Croo said that Belgium would consider such involvement only if NATO or bilateral requests are made, for example, by Saudi Arabia or the UAE.

Australian officials on the 16th said that Australia will not send naval ships to the Strait of Hormuz. Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said in an interview that Australia is fully prepared for the “economic crisis” caused by Middle East conflicts and that it will not send warships to the Strait of Hormuz.

UK Prime Minister Rishi Sunak on the 16th stated that restoring navigation in the Strait of Hormuz “is not an easy task,” and that the UK is working with allies to develop feasible plans to restore free passage. Sunak also responded to comments by US President Trump, saying that navigation in the Strait of Hormuz is not NATO’s responsibility, and that the UK “will not be drawn into a broader (Middle East) war.”

(Source: Securities Times)