Hormuz peace deal shaken after reported IRGC attack on cargo ship; Oil jumps

Investing.com -- Crude oil prices edged higher and caught global markets flat-footed on Thursday after Iran’s Islamic Revolutionary Guard Corps attacked a Singapore-flagged cargo ship in the Strait of Hormuz, according to a report from the Wall Street Journal, citing two senior U.S. officials.

The incident blindsided investors who had expected a period of cooling geopolitical tensions. It occurred just days after the U.S. and Iran signed a landmark agreement intended to end hostilities and fully reopen the vital maritime shipping lane.

The unexpected attack sent immediate shockwaves through energy markets, reversing a recent downward trend in crude prices that had followed the peace agreement. Traders scrambled to price the geopolitical risk premium back into oil futures as fears of a prolonged supply disruption resurfaced.

The strike targeted the Ever Lovely, a Singapore-flagged container ship. The projectile damaged the vessel’s bridge but caused no casualties or environmental impact, according to the U.K. Maritime Trade Operations (UKMTO). The vessel was navigating near the coast of Oman when it was hit, coming just hours after Iran’s paramilitary navy issued a stern warning against commercial ships utilizing unauthorized routes through the waterway.

The escalation shattered the fragile optimism that had been building earlier in the week. On Tuesday, the International Maritime Organization (IMO) had informed shippers it was actively coordinating an evacuation route for hundreds of commercial ships stranded in the Persian Gulf, working in tandem with Iran, Oman, the U.S., and other coastal states.

The sudden aggression directly threatens the newly minted 60-day diplomatic agreement. Under the terms of the deal, Tehran committed to making its best efforts to ensure the safe passage of commercial vessels through the strait.

In exchange for those security guarantees, the U.S. had already lifted its blockade of Iranian ports. Furthermore, Washington had waived key sanctions on Iranian oil sales, permitting the regime to trade its crude in U.S. dollars for the first time in decades—concessions that investors assumed would keep the peace, making Thursday’s attack a stark and unwelcome surprise for global markets.

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