Global oil prices climbed sharply after at least three ships were attacked near the Strait of Hormuz, one of the world’s most critical energy corridors. The developments come as Iran intensifies military operations across the Middle East following ongoing strikes by the United States and Israel.
According to the UK Maritime Trade Operations (UKMTO), two vessels were struck by unidentified projectiles, resulting in fires onboard. A third ship reported an explosion from an “unknown projectile” that detonated very close to it. While crews were confirmed safe in at least one case, the incidents have significantly heightened security concerns in the region.
Iran has issued warnings to international shipping, cautioning vessels against passing through the strait. The waterway handles roughly 20% of the world’s oil and gas supply, making it a vital artery for global energy markets. As tensions escalate, maritime traffic at the entrance to the Gulf has slowed dramatically, with more than 150 tankers reportedly anchoring in open waters rather than risk transit.
In early Asian trading on Monday, oil prices initially spiked by more than 10% before easing slightly. Brent crude rose over 8% to $78.72 per barrel, while U.S.-traded oil gained around 7.6% to $72.20. Analysts say markets are reacting to the threat of supply disruption, though some caution that infrastructure has not yet been directly targeted.
Energy analysts note that while the market is not in full panic mode, prolonged instability could push prices significantly higher — potentially beyond $100 per barrel if the strait remains effectively closed. The OPEC+ group has agreed to increase output by 206,000 barrels per day in an attempt to cushion price pressures, though experts question whether this would be enough in the event of sustained conflict.
The Islamic Revolutionary Guard Corps (IRGC) claimed that three UK- and US-linked tankers had been struck and were burning, though Washington and London have not issued confirmation. Meanwhile, global shipping firms are adjusting routes, with Danish giant Maersk announcing it would suspend sailings through the Bab el-Mandeb Strait and Suez Canal, opting instead to reroute vessels around the Cape of Good Hope.
With fresh aerial exchanges reported between Iran and Israel — and strikes noted in parts of the UAE, Qatar, Bahrain, and Kuwait — the situation remains fluid. Analysts warn that the duration of the conflict will ultimately determine whether this is a short-term market shock or the beginning of a sustained energy crisis.
