Qatari LNG Ship Struck in Strait of Hormuz, Testing US Talks

fdngksr537nk7bo(oqrbs]r)_media_dl_1.png Joint Maritime Information Cente

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(Bloomberg) — A Qatari liquefied natural gas carrier was hit and a laden Saudi oil tanker suffered damage as they exited the Strait of Hormuz, heightening unease among shipowners and testing a US-Iran agreement to halt attacks.

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The Al Rekayyat gas carrier was struck in the early hours of Tuesday, according to people familiar with the matter, who asked not to be named due to the sensitivity of the issue. Separately, a person familiar with the matter said that a Saudi crude oil tanker was damaged while leaving Hormuz, without providing further details. 

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The incidents are a reminder of the continued risk to ships crossing through Hormuz, even after an interim peace deal was signed between the US and Iran last month. Iran has repeatedly said it won’t allow vessels to transit the waterway without its permission. Meanwhile, the US has continued to manage a shipping corridor along the Omani side of the strait, keeping ships away from Iranian waters.

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Oil markets remained relatively muted Tuesday, with some tankers still making the trip through Hormuz despite the incidents.

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The Qatari vessel, owned by the nation’s state-owned shipping company Nakilat, is the first LNG tanker from the country to come under attack since the war began, and marks a significant setback for its efforts to revive exports after months of near-paralysis.

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The incident comes at a delicate moment for diplomacy, with Qatar serving as a key intermediary in negotiations between the US and Iran over ending the conflict.

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Any attacks involving Saudi oil tankers would also raise concerns in oil markets. While the kingdom can export some crude via its Red Sea terminal at Yanbu, it still relies on Hormuz to fully restore flows to normal levels. Saudi ships have been among the slowest in Gulf nations to return to the waterway. Exports have remained uneven, occasionally nearing pre-war levels. 

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Both ships were transiting Hormuz without their transponders on, ship-tracking data show, a common measure to avoid attracting attention. 

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QatarEnergy, Nakilat, Saudi tanker giant Bahri and the Saudi Energy Ministry didn’t respond to requests for comment.

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The strike has already raised fresh concerns among shipowners. Al Areesh, another LNG tanker that loaded in Qatar and was headed out of the Persian Gulf, appeared to turn before the strait on Tuesday before sailing in circles, according to shipping data. It had been signaling Pakistan’s Port Qasim as its destination.

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Other traffic continued to flow, however. At least two Japan-linked supertankers were sailing through the strait on the Iran-approved route, together with a China-bound liquefied petroleum gas carrier. To the south, a convoy of at least six ships, including three very large crude carriers, appears to be approaching the Omani coastline on the way out of the Persian Gulf.

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European gas prices climbed as much as 6%, while Brent crude futures ticked higher on the news. Oil prices have plunged in recent days as the prospect of more vessels being able to transit the strait prompted concerns the market will soon be oversupplied.