Crude oil price spikes after Iran drone strike on Singapore-flagged container ship in Hormuz

Oil prices swung in mixed directions Thursday as traders digested a reported IRGC drone attack on a Singapore-flagged container ship in the Strait of Hormuz, rekindling fears of renewed disruption in the vital waterway just as flows were beginning to normalise.

Murban crude, the Abu Dhabi benchmark, posted the strongest move, jumping $2.61 to $69.06, up nearly 4%, while benchmark Brent crude climbed $1.52 to $75.26 a barrel, a gain of 2.06%.

West Texas Intermediate crude, however, slipped 50 cents to $71.42, down 0.70%. Natural gas futures fell slightly to $3.309, down 1.02%.

The price action came hours after the Singapore-flagged Ever Lovely was hit while exiting the strait near Oman.

UK Maritime Trade Operations and multiple security sources reported the suspected drone strike, which US officials attributed to the IRGC.

The vessel sustained damage but continued sailing with no reported injuries.

The incident prompted the UN agency overseeing a limited evacuation/convoy effort in the strait to pause operations, underscoring lingering risks despite a recent US-Iran understanding aimed at restoring shipping.

Analysts said the attack introduced fresh geopolitical risk premium into the market after oil prices had fallen sharply in recent weeks on hopes that the strait — which carries about one-fifth of global seaborne oil — would fully reopen following months of conflict-related disruptions.

Even limited incidents like this remind traders how fragile the recovery remains.

The divergent moves between benchmarks reflected varying regional sensitivities, with stronger gains in Middle East-linked grades like Murban highlighting concerns over potential renewed Iranian interference in Gulf exports.