Qatari LNG ship struck in Strait of Hormuz, testing US-Iran agreement

By Weilun Soon and Stephen Stapczynski

 

A laden liquefied natural gas carrier was hit by a projectile near the Omani coast as it exited the Strait of Hormuz, heightening unease among shipowners and testing a US-Iran agreement intended to halt attacks in the waterway.

 

The Al Rekayyat was struck in the early hours of Tuesday, according to people familiar with the matter, who asked not to be named due to the sensitivity of the issue. An alert from security consultancy EOS Risk Group confirmed the attack about 8 nautical miles (15 kilometers) east of Limah, Oman, and a subsequent fire, classifying it as either a drone or missile strike.  

 

The vessel, owned by Qatar’s state-owned shipping company Nakilat, appeared to be traveling without its transponders on, ship-tracking data show. The UK Maritime Trade Operations had earlier issued an alert but did not identify the vessel.

 

QatarEnergy and Nakilat didn’t respond to requests for comment.

 

Hormuz has been a focal point for all sides since the US and Israel began strikes on Iran in late February, as shipowners assess the safety of the crossing in order to dispatch vessels in and out of the Persian Gulf.

 

Tuesday’s attack has already raised fresh concerns. Al Areesh, another LNG tanker that loaded in Qatar and was headed out of the Persian Gulf, appeared to turn on Tuesday, according to shipping data. It had been signaling Pakistan’s Port Qasim as its destination.

 

European gas prices climbed as much as 4.5% in early trading in Asia, while Brent oil futures ticked higher on the news. Oil prices have plunged in recent days as the prospect of more vessels being able to transit the strait prompted concerns the market will soon be oversupplied.

 

Traffic has improved since an interim peace deal was signed last month, but continues to face challenges and interruptions, as Iran periodically asserts its control of the waterway, blocking transits on routes it has not approved, or attacking vessels. On Monday, a group of Japan-linked ships appeared to have transited the strait by hewing to an Iran-approved route. 

 

There is still little clarity, however, over a permanent solution to manage the chokepoint amid talks aimed at achieving a lasting peace.

 

The Iran-approved corridor along the north side of the strait has seen two-thirds of all transits in recent days, according to data from intelligence firm Kpler Ltd., with the rest crossing along the US-managed Oman route.

 

Out of the 25 ships that transited Hormuz on Monday alone, only three did so on the Omani side with their transponders on, the data show — despite an update from regional naval forces reminding shipowners that the US-managed Oman route remained available for use. 

 

“The continued use of different shipping lanes suggests that traffic through the strait remains operational, but is fragmented as shipowners adopt different routing strategies based on their individual risk assessments,” said Muyu Xu, senior crude oil analyst at Kpler. 

 

An attack on a Qatari tanker is also a direct threat to the country’s plans to revive shipments from the world’s largest LNG facility. Al Rekayyat had picked up an LNG shipment from Qatar’s Ras Laffan earlier this month, the people familiar with the matter said.

 

The attack came as President Donald Trump headed to a NATO leaders’ summit in Ankara, Turkey. The US war with Iran is expected to be a major topic of discussion, with Trump having expressed anger at several members of the North Atlantic Treaty Organization for not doing more to help the US against the Islamic Republic.

 

Talks between the US and Iran were suspended as Tehran began a mass funeral for the late Supreme Leader Ali Khamenei, who was killed on the first day of the war in late February. Qatar said the next meeting would be scheduled as soon as possible after the funeral ceremonies. Khamenei is scheduled to be buried in his hometown of Mashhad on July 9.

 

Axios reported earlier that two merchant vessels had been struck by Iranian missiles, without naming the ships. Both vessels suffered significant damage but there were no casualties, Axios cited an unidentified US official as saying.