Oil Prices Fall Despite Iranian Attack Against Vessel In Hormuz Strait; WTI Drops Below $70 a Barrel

Oil prices dropped on Friday despite an Iranian attack against a vessel in the Strait of Hormuz.

Brent crude, the international benchmark, fell more than 3.5% and stood below $73 a barrel at 9:59 a.m. ET. West Texas Intermediate, the U.S. benchmark, dropped a similar amount and fell below $70 a barrel at the same time.

The attack in question took place when a vessel reported being struck by a projectile while sailing approximately 7.5 nautical miles southeast of the Omani port of Dahit.

While the ship sustained damage, there were no immediate reports of fatalities or injuries among the crew. Authorities have not publicly identified the vessel or disclosed details about its cargo or destination.

Two U.S. officials told Reuters that Iran was responsible for the attack, speaking on condition of anonymity because of the sensitivity of the matter. Iranian authorities had earlier warned commercial vessels against using a newly established maritime corridor through the Strait of Hormuz that had been coordinated by Oman and supported by the United Nations to facilitate safer commercial transit through the region.

Tehran warned that ships using routes outside those approved by Iranian authorities could no longer expect safe passage. Officials in the revolutionary guard described such scenarios as “unacceptable and dangerous,” adding that vessels ignoring its instructions could face retaliation. The guard’s navy said only shipping routes approved by the country are allowed, and coordination with officials is mandatory.

The outlet detailed that the threat comes after a key naval information group proposed alternative routes on Saturday.

The UN halted an initiative to evacuate sailors stranded in the Strait of Hormuz after the incident.

The International Maritime Organization (IMO) Secretary-General Arsenio Dominguez said in a statement that he was informed of the “attack” on Thursday.

“I have always reiterated that the safety of the seafarers remains paramount. Therefore, to ensure a coordinated approach and navigational safety, the evacuation plan will be paused until further clarity is obtained,” he said, noting that the vessel “did not transit under IMO’s evacuation framework.”

“I have decided to temporarily pause its implementation in order to reconfirm that the necessary safety guarantees continue to be in place for the ships on our evacuation list and all those in the region,” Dominguez added.