Rising tension in the Gulf of Oman takes its toll on the crude oil markets

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The incident involving the hijacking of a ship in the Gulf of Oman, according to the very British maritime agence that first reported it on Tuesday, appears to be over. The tension in the region, however, is far from over with the threat of the 'proportional response' by the US still hanging in the air.

Israel, the arch enemy of Iran, meanwhile, has vowed its own response to the attack on the Israel-registered tanker.

Since neither the US nor Israel says what form the response is going to take - for obvious reasons - the rumour mill in the region - and beyond - has started spinning faster than it normall does that envitably leads to unsetlling the markets.

Although Iran tried to distance itself from the development, and the deadly attack on a ship a few days ago, neither the Western powers nor the key regional players appar to be convinced that was the case. Hence, the tension is building and crude oil markets are edgy, as almost 5th of crude oil supplies flow through the troubled passage.

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