Two ships hit near Strait of Hormuz as fears grow of oil price rises

Two ships have been hit by unknown projectiles near the Strait of Hormuz, as Iran continues to launch strikes across the Middle East in response to an ongoing attack against it by the US and Israel.

One vessel sailing east of the vital trade route was struck, while another was hit off the coast of the United Arab Emirates but planned to continue its journey, the UK Maritime Trade Operations Centre (UKMTO) added.

Iran has warned ships not to pass through the strait, which carries about 20% of the world's oil and gas, but not officially closed it.

International shipping is said to have come to a standstill at the strait's entrance, with fears of disruption already pushing up global oil prices.

While markets will not open until 01:00 GMT, so-called over-the-counter trades between private buyers suggest the price of Brent crude - the international benchmark - has jumped by around 10% to $80 (£59) a barrel.

Some analysts have warned it could go over $100 in the event of a prolonged conflict.

The UKMTO did not identify any of the vessels that had been hit.

But unnamed maritime security sources told the news agency Reuters that a Marshall Islands-flagged oil tanker had been damaged off the coast of Oman.

Iranian state television said an oil tanker was sinking after it was struck while attempting to "illegally" pass through the Strait of Hormuz. The BBC has not been able to verify this claim.

Iran and Israel launched fresh aerial attacks against each other on Sunday, after US-Israeli strikes killed Iran's Supreme Leader Ayatollah Ali Khamenei on Saturday and prompted retaliatory strikes on several countries in the Middle East.

Strikes have been reported in Dubai in the UAE, Qatar's capital Doha, Bahrain, and Kuwait.

In the midst of these attacks, dozens of tankers have stopped moving to avoid the strait.

On Sunday, the Opec+ group of oil producing nations - which includes Saudi Arabia and Russia - agreed to increase their output by 206,000 barrels a day to help cushion any price rises, but some experts doubt this would help much.

Edmund King, president of the AA, warned the disruption could push petrol prices to levels not seen since the pandemic.

In 2022, fuel surged to more than 190p per litre. It currently costs around 133p per litre.

"The turmoil and bombing across the Middle East will surely be a catalyst to disrupt oil distribution globally, which will inevitably lead to price hikes," King told the Times.

"So drivers beware, within the next 10 to 12 days we could be seeing record prices at the pumps."