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LNG tanker attack rattles Strait of Hormuz trade

Bloomberg Markets •
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A liquefied natural gas (LNG) carrier, the Al Rekayyat, owned by Qatar’s state-owned Nakilat, was struck by a projectile near the Omani coast shortly after exiting the Strait of Hormuz. The attack, which occurred early Tuesday, follows a recent peace deal aimed at halting such incidents in the crucial waterway.

Ship-tracking data indicated the vessel was not broadcasting its transponders at the time of the incident. The strike caused significant damage but no casualties, according to reports. The incident immediately impacted energy markets, with European gas prices climbing as much as 4.1% and Brent crude futures ticking higher.

This attack poses a direct threat to Qatar's plans to revive shipments from its massive LNG facility at Ras Laffan. The Strait of Hormuz is a vital chokepoint, with traffic resuming slowly and with interruptions. The renewed insecurity raises concerns for shipowners and producers reliant on the waterway, potentially disrupting global energy supply chains and impacting the market's recovery from recent price plunges.