Tension at Sea: Oil Tankers Collide Near Strait of Hormuz Amid Conflict

A collision between two oil tankers near the Strait of Hormuz on Tuesday has further fueled concerns in a region already fraught with geopolitical tension. This comes amid a backdrop of rising electronic interference linked to the ongoing conflict between Iran and Israel, which has recently seen missile exchanges. The affected waterway is a crucial passage, accounting for one-fifth of the world's seaborne oil.

According to reports, the United Arab Emirates coast guard successfully evacuated 24 crew members from the tanker Adalynn, which was left without cargo. The other vessel, the Front Eagle, operated by the Oslo-listed Frontline company, suffered a deck fire but reported no injuries among its crew, nor any oil spillage. The Front Eagle was transporting 2 million barrels of Iraqi crude oil toward China at the time of the incident.

While the collision underscores the volatility in the region, industry insiders report that war risk insurance costs for vessels navigating to Israeli ports have risen sharply, though Gulf voyage insurance rates remain stable for now. Ship movement data showed increased caution around the Strait of Hormuz, with some companies halting voyages amid the uncertainty.

(With inputs from agencies.)