After the overnight slump, oil price surges on June 13, 2019, from the report of tanker explosions in the Gulf of Oman near the Iranian coastline. The news leads to a sharp gain of Brent Oil to increase as much as 4.45% to trade at $62.64/bbl while WTI hikes almost 3.83% to trade at $53.1/bbl.
Significant fire damage occurs to Front Altair and Kokuka Courageous Tankers in the morning which led to an evacuation of their crew. The Kokuka Courageous, a chemical tanker that loaded in Saudi Arabia and was en route to Singapore, caught fire at the same time as the Front Altair.
The cause remains unclear as of now, but some suspect that this might be due to the dispute between the U.S. and Iran after the U.S. President Donald Trump withdrew from a 2015 multinational nuclear pact with Iran and reimposed sanctions, notably targeting Tehran’s key oil exports.
The incident followed the earlier sabotage attacks on vessels near the Fujairah emirate, one of the world’s largest bunkering hubs and located just outside the nearby Strait of Hormuz.