Suddenly, a sharp straight-line surge! Major news from the Strait of Hormuz! Another tanker attacked!

The Strait of Hormuz and its surrounding waters are again experiencing sudden incidents!

According to the latest reports, the UK Maritime Trade Operations Office said on the 17th that a tanker anchored in the Gulf of Oman was attacked by an unidentified projectile.

The day before, the Shah natural gas field in the UAE caught fire due to a drone attack, causing operations to halt, and officials are assessing the damage. Additionally, a oil field in Iraq and an important port in the UAE were also targeted by drone and missile attacks.

Meanwhile, there is big news from the Strait of Hormuz. Several countries including Germany, Italy, Australia, and Belgium have stated they will not participate in escorting ships through the Strait.

During today’s trading, international oil prices surged sharply, with WTI crude rising over 5% and Brent crude over 4%. As of the time of this report, WTI crude and Brent crude increased by 5.35% and 4.65%, respectively, trading at $97.41 per barrel and $104.87 per barrel.

“Risks remain severe: just one Iranian militia firing missiles or laying mines on passing oil tankers is enough to escalate the situation again,” said IG Market Analyst Tony Sycamore in a report. Senior Market Analyst Priyanka Sahdevwa from Philip Nova stated that currently, the oil market is focused on the duration of the conflict, supply disruptions in the Strait of Hormuz, and the potential damage to Gulf region oil infrastructure caused by this chaos.

Oil Tanker Attacked

According to CCTV News, the UK Maritime Trade Operations Office said on the 17th that a tanker anchored in the Gulf of Oman was attacked by an unidentified projectile, with reports of minor structural damage and no injuries.

The office stated in a release that the incident occurred 23 nautical miles east of Fujairah, UAE (about 42.6 km), with no environmental pollution reported. No further details were provided.

Additionally, foreign media reported that on Monday, the UAE’s Shah natural gas field was set on fire by a drone attack, halting operations, and officials are assessing the damage. Iraq’s oil field and a key port in the UAE were also targeted by drones and missiles.

According to the media office of Abu Dhabi, authorities have controlled the fire at the Shah high-sulfur gas field in the Rubhali Desert in western Abu Dhabi. No injuries have been reported.

Furthermore, a statement from Iraq’s Ministry of Oil spokesperson said that the Majnoon oil field in southern Iraq was attacked, but no additional details were provided.

Amidst the expansion of Iran’s military conflicts leading to rising energy costs and potential inflation pressures, the Reserve Bank of Australia (RBA) raised interest rates for the second consecutive meeting on Tuesday, intensifying efforts to combat stubborn inflation.

The RBA increased the cash rate from 3.85% to 4.1%, marking the first time since mid-2023 that rates have been raised consecutively. The policy statement noted that the nine-member policy committee decided to tighten monetary policy by a 5-4 vote.

The statement said, “The situation in the Middle East remains highly uncertain, and in various scenarios, could exacerbate global and domestic inflation. Accordingly, the committee considers that inflation may remain above target for some time, with risks further skewed to the upside, including inflation expectations.”

Following the decision, Australian government bonds continued to rise, and the Australian dollar declined. The yield on 3-year Australian bonds fell 8 basis points to 4.51%, from 4.56% before the announcement. The AUD/USD exchange rate dropped 0.1% to 0.7065, from 0.7083 prior to the decision.

Philippine Finance Secretary Frederick D. Go said that if oil prices continue to rise, the country’s central bank might tighten monetary policy next month. In an interview on Tuesday, Go stated, “If oil prices stay high, the Monetary Board is very likely to consider tightening policy at the next meeting.”

Frederick D. Go is a member of the Bangko Sentral ng Pilipinas’s Monetary Board, with the next policy meeting scheduled for April 23. The rate hike would mark a sudden shift in the Philippines’ monetary policy, after the central bank just cut borrowing costs by 25 basis points in February to support economic recovery.

Multiple Countries Say They Will Not Participate in Hormuz Strait Escort

According to CCTV News, since the US and Israel launched military strikes against Iran, shipping through the Strait of Hormuz has been nearly completely halted. US President Trump plans to announce the formation of a so-called “Hormuz Alliance” to control the strait and pressure European, Asian, and Gulf countries to send warships.

However, so far, many countries have taken a cautious stance or outright refused, with no nation publicly responding to the US call.

EU High Representative for Foreign Affairs and Security Policy Josep Borrell said in Brussels on the 16th that “this is not Europe’s war.” He also stated that EU member states have no intention of expanding the current “Shield” maritime escort operation to the Strait of Hormuz. Borrell emphasized that the EU’s current focus is on shipping safety in the Red Sea and surrounding waters, and that diplomatic efforts should be used to de-escalate regional tensions.

German Chancellor Olaf Scholz said on the 16th that Germany would not participate in military operations to protect oil tankers in the Strait of Hormuz, emphasizing that NATO is a “defense alliance,” not an “intervention alliance.”

Scholz, speaking in Berlin during a meeting with Dutch Prime Minister Mark Rutte, said that Iran’s conflict is not a NATO matter. He also noted that so far, no feasible plan has been seen that could make such actions successful.

Italy also refuses to participate in military operations in the Strait of Hormuz. On March 16, Italian Prime Minister Giorgia Meloni stated that Italy’s current role is to strengthen EU escort operations in the Red Sea, and that the situation in the Strait of Hormuz is clearly more complex, as it would mean moving further toward involvement in the conflict.

Meloni said that freedom of navigation is crucial for Italy, but military intervention in the Strait of Hormuz would objectively mean taking a step further into the conflict. Italian media interpreted this as Meloni’s refusal to participate in military actions in the Strait.

On the 16th, Belgian Prime Minister Alexander De Croo publicly stated that the Belgian government’s position is that Belgium will not participate in US military operations in the Strait of Hormuz. De Croo said that discussions would only occur if NATO or bilateral requests are made, such as those from Saudi Arabia or the UAE.

Australian officials also stated on the 16th that Australia will not send naval ships to the Strait of Hormuz. Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said in an interview that Australia is fully prepared for the “economic crisis” caused by the Middle East conflict and that it will not send warships to the Strait of Hormuz.

UK Prime Minister Rishi Sunak on the 16th said that restoring navigation in the Strait of Hormuz “is not an easy task,” and that the UK is working with allies to develop feasible plans to restore free passage. Sunak also responded to former US President Trump’s remarks, saying that the Strait of Hormuz is not NATO’s responsibility, and that the UK “will not be drawn into a broader (Middle East) war.”