Oil prices rise as investors monitor shipping disruption in the Strait of Hormuz

Oil prices rebounded again on Wednesday morning as investors monitored updates on shipping attacks in the Strait of Hormuz.

Brent crude, the international benchmark, rose 0.2% to $91.71 a barrel, while US benchmark crude gained 0.1% to $86.12 in late-morning trading, as hopes of de-escalation in the Iran war were tempered by continued attacks on shipping in the Strait of Hormuz, keeping investors on edge.

Iran's army said on Wednesday, according to AFP, that an oil tanker had struck a mine and caught fire in the Strait of Hormuz, where the country has been targeting ships that transit without its authorisation.

Since the outbreak of the Middle East war in late February, Tehran has heavily restricted traffic through the strategic waterway, insisting vessels use routes authorised by the Islamic republic.

The United States has in response imposed a naval blockade on Iranian ports and helped tankers travel the strait, which normally carries about one-fifth of global oil.

The American military recently claimed all mines had been cleared from the strait.

"Early this morning, a violating oil tanker caught fire after striking a naval mine in an unsafe, prohibited area in the east of the Strait of Hormuz," the naval forces of Iran's army said in a statement carried by state TV.

In recent weeks Tehran has made multiple announcements saying ships had caught fire in the strait, often claiming they struck mines.

US Central Command, which oversees US military operations in the region, has been escorting ships through the waterway and said last month that it had helped Gulf countries export 1.5 billion barrels of oil via Hormuz since the summer.

On Tuesday, Iran's Islamic Revolutionary Guard Corps said three oil tankers had caught fire in Hormuz.

India's shipping minister later said a Liberia-flagged tanker carrying Indian seafarers had been hit by a projectile in the Gulf.

"Four crew members were injured in the attack, including one Indian national, who suffered minor injuries and was safely taken ashore for further medical examination," Sarbananda Sonowal said in a post on X.

The remaining 18 crew members, including five Indians, were safe, he added.

It was not clear if the tanker was among those the Revolutionary Guards said had been hit.