Oil jumps more than 3% on reports of tanker incident in the Gulf of Oman off Iran coast - CNBC

The Iranian coastline near the Strait of Hormuz

Rob Atherton | iStock | Getty Images

Brent crude spiked 3% on Thursday morning on reports of tanker explosions in the Gulf of Oman near the Iranian coastline.

Oil tankers the Front Altair and the Kokuka Courageous have sustained significant fire damage and its crews have been evacuated, according to multiple shipping agents and chartering sources. 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 just before 6:00 a.m. local time.

A representative for BSM Ship Management, the Kokuka's Singapore-based manager, said 21 crew had abandoned ship after the "security incident" damaged the ship's starboard hull. They were rapidly rescued from a lifeboat by a nearby vessel, the representative said.

The Front Altair was scheduled to carry a naptha cargo from the Persian Gulf to Japan, S&P Platts reported in a Platts Global Alert, citing shipping sources. Its owner, Frontline, could not be immediately reached for comment.

The cause of the fire remains unclear, but has sparked fears of attack and comes just weeks after alleged ship sabotage in the region.

United Kingdom Maritime Trade Operations, a division of the U.K. Royal Navy, said it is currently investigating the incident and has urged "extreme caution" amid mounting tensions between Iran and the U.S.

Iranian state media has reported that two oil tankers were targeted in explosions, without providing evidence.

CNBC has reached out to maritime authorities for more details.

A spokesman for the US Navy's Fifth Fleet in Bahrain told the Associated Press that his command was "aware" of the incident and was seeking further details. U.S. Naval ships are in the area and are "rendering assistance" after forces in the region received two separate distress calls, the Fifth Fleet said.

Brent crude is currently trading at $61.77 a barrel.

This is a breaking news story, please check back for more.

Let's block ads! (Why?)