An oil tanker, flying the Marshall Islands flag, was struck by a drone boat 52 nautical miles off the coast of Muscat, Oman, triggering an explosion and fire in the main engine room. One Indian crew member was killed, while the remaining 20 crew, including Indian, Bangladeshi, and Ukrainian nationals, were evacuated safely by the Panamanian-flagged vessel MV SAND, according to Oman’s Maritime Security Centre (MSC).
Escalating maritime risks
The incident comes amid heightened tensions in the Gulf region, following US and Israeli strikes on Iran. Authorities have not identified the attacker, but the attack follows a previous incident over the weekend involving a Palau-flagged oil tanker near Musandam.
Oman’s MSC is closely monitoring the damaged tanker and has issued warnings to ships navigating nearby waters in the Gulf of Oman and the Strait of Hormuz.
Impact on shipping and oil markets
The attacks have caused major shipping disruptions, with a reported 70% drop in vessel traffic through the strait since Saturday. Major container lines, including Maersk, Hapag-Lloyd, CMA CGM, NYK, Mitsui O.S.K. Lines, and Kawasaki Kisen, have suspended all transits through the strait, rerouting vessels and directing ships to safe anchorages.
Oil prices reacted sharply, with US crude rising 7% to $72 a barrel and Brent crude climbing 7% to $78.4, as traders fear a halt in oil supplies from the Middle East. Around 150 crude and LNG tankers have anchored in Gulf waters off the UAE, Saudi Arabia, Qatar, and other regional ports.
While the Strait of Hormuz is not officially blockaded, shipping operations are effectively on hold due to security risks and insurance restrictions, interrupting approximately 20–30% of global seaborne oil trade.
The situation remains fluid, with shipping and energy experts closely monitoring developments until regional security stabilises.
Ship-tracking platform MarineTraffic.com said that transit through the chokepoint fell by approximately 70% since Saturday, when the U.S. and Israel launched a major attack on Iran. It noticed changes in vessels’ navigation in the past three days, including “U-turns, idling, reduced speeds, and last-minute diversions.”
Also read: Fuel prices rise likely over next 10 days
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