Greek Tanker Attack Escalates Red Sea Tensions, Raising Environmental Concerns Over 150,000 Tonnes of Crude Oil

The Greek-flagged oil tanker, Sounion, carrying 150,000 tonnes of crude oil, became an environmental threat after being attacked in the Red Sea on Wednesday.

The vessel was targeted near Yemen’s port city of Hodeidah by multiple projectiles. The attack is believed to be part of the ongoing conflict where Iran-aligned Houthi rebels have been striking ships in response to the Israel-Gaza conflict.

The European Union’s Red Sea naval mission, Aspides, confirmed that the vessel now poses significant environmental and navigational hazards.

Escalating Maritime Security Threats in the Region

The Sounion was the third ship operated by Athens-based Delta Tankers to be attacked this month. The incident resulted in a fire onboard, which was fortunately extinguished by the crew. However, the vessel lost engine power, leaving it anchored between Yemen and Eritrea.

The UK Maritime Trade Operations (UKMTO) confirmed the attack, further escalating concerns over the region’s security. Delta Tankers is working on relocating the vessel for further inspections and repairs.

Rescue Operations and Broader Implications

Responding to the captain’s request, the EU Red Sea naval mission dispatched a ship to rescue the crew, successfully relocating them to Djibouti. The Aspides mission also neutralized an Unmanned Surface Vessel (USV) that posed an imminent threat to the ship. This incident underscores the growing risks in the Red Sea, where Houthi attacks have sunk vessels and disrupted global trade.

In a separate event on Thursday, another vessel reported an explosion near Yemen, causing minor damage. Greek officials have condemned these attacks as serious violations of international law, highlighting the escalating threat to global shipping routes.

Technical Analysis: WTI Crude Oil Price Outlook

Following the escalation of geopolitical tensions in the Red Sea, WTI Crude Oil is experiencing bearish pressure, currently trading at $71.69 on the 4-hour chart. The price remains below the pivot point of $72.26, indicating potential further weakness.

Immediate resistance is observed at $73.66, followed by $74.74, where the 50-day Exponential Moving Average (EMA) is positioned. This EMA level suggests that bearish sentiment remains strong as the price struggles to break above it.

Crude Oil Price Chart - Source: Tradingview

On the downside, immediate support lies at $71.00, with subsequent levels of support at $70.63 and $69.43.

The Relative Strength Index (RSI) is at 31, signalling that the market is in oversold territory, which might limit further declines. However, if the price fails to hold above the $71.00 support level, a continuation of the downward trend towards $70.63 is likely.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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