Maersk and Hapag-Lloyd Halt Hormuz Crossings as Oil Braces for $100

Two of the world’s largest container lines suspended ship crossings of the Strait of Hormuz on Sunday after a tanker was attacked off Oman and Iran’s Revolutionary Guards declared the waterway closed, a move that threatens about a fifth of global oil supplies. According to Marine Insight, whose account of the carriers’ decisions Euronews did not corroborate, Maersk said it was “suspending all vessel crossings in the Strait of Hormuz until further notice,” and that Germany’s Hapag-Lloyd did the same.

The Palau-flagged tanker Skylight was hit about five nautical miles north of Khasab Port, off Oman’s Musandam peninsula, Euronews reported, citing Oman’s Maritime Security Centre. All 20 crew members were evacuated and at least four were injured. Euronews said the attacker and the weapon have not been identified, and that the vessel was reportedly under U.S. sanctions. Marine Insight added that the British Navy said Iran’s closure orders were not legally binding and urged caution.

The strait handles roughly 20 percent of global oil flows, including supplies from Saudi Arabia, the UAE, Iraq, Kuwait and Iran, along with large volumes of Qatari liquefied natural gas, Marine Insight said. Barclays analysts, cited by Euronews, warned that a prolonged halt could block up to 20 million barrels per day. Marine Insight cited the data firm Kpler as reporting that 14 LNG tankers slowed, turned back or stopped in or near the strait.

Euronews reported widespread talk of Brent crude reaching $100 a barrel, a level last seen after Russia’s 2022 invasion of Ukraine, and said Barclays raised its forecast to that level. Eight OPEC+ countries met virtually on Sunday and agreed to a small output increase of 206,000 barrels a day starting in April, with their next meeting set for April 5, Euronews said. Marine insurers also halted coverage for voyages in the area, the outlet reported.

Maersk also paused Trans-Suez sailings through the Bab el-Mandeb strait and diverted Middle East to India services to the Mediterranean and the U.S. East Coast around the Cape of Good Hope, Marine Insight reported. That adds thousands of nautical miles, which raises transit times, fuel bills and freight rates. MSC told its Gulf-based vessels to shelter in designated safe areas, and CMA CGM told ships to take shelter and suspended Suez passage, the outlet said.

How long the disruption lasts will depend on whether the fighting in the Gulf subsides and whether insurers and carriers judge the strait safe again, neither of which was clear on Sunday night.

Oman also reported a drone attack on the port of Duqm, Euronews said.