An oil tanker operated by Trafigura, the Marlin Luanda, was struck by a missile in the Gulf of Aden after transiting the Red Sea. The vessel, which is flagged under the Marshall Islands, was targeted by Houthi militants who claimed responsibility for the attack. The militants described the tanker as a “British oil ship.” Trafigura confirmed that firefighting equipment on board is being used to suppress a fire in one of the cargo tanks and stated that military ships in the region are underway to provide assistance.
The attack on the Trafigura vessel is part of a series of attacks by Houthi militants in Yemen against commercial vessels transiting the Red Sea since November. These attacks are carried out in support of Palestinians. In response to the escalating situation, the U.S. and UK initiated airstrikes against the Houthi militia on January 11, aiming to deter the Iranian-backed group.
Earlier on the same day as the attack on the Marlin Luanda, Houthi militants fired a ballistic missile at the U.S. Navy destroyer Carney in the Gulf of Aden. However, the missile was successfully shot down by the Carney, and no injuries or damage were reported.
The recent attacks have led several major oil tanker companies to pause traffic toward the Red Sea. This response comes as a precautionary measure following the airstrikes launched by the U.S. and UK against the Houthis.
Despite these incidents, oil futures have not responded dramatically to the escalating tensions in the Middle East. This lack of significant impact on oil prices is due to the absence of a major disruption to supply. However, analysts have warned that a direct confrontation between the U.S. and Iran could result in a significant increase in oil prices.
Robert Thummel, a portfolio manager at Tortoise Capital, expressed his belief that the market is not adequately pricing in geopolitical risk into crude prices. He argued that given the tensions in the Middle East, West Texas Intermediate (WTI) should be trading at $85 per barrel, instead of the current price of $78.10.
The attack on the Trafigura oil tanker highlights the ongoing conflict in Yemen and the potential risks to global oil supply. As tensions continue to escalate in the Middle East, the market will closely monitor any developments that could impact oil prices.