LONDON, United Kingdom — Global oil prices jumped sharply after at least three ships were attacked near the Strait of Hormuz, a critical maritime chokepoint that carries about 20pc of the world’s oil and gas supplies.
The UK Maritime Trade Operations (UKMTO) said two vessels were struck by unknown projectiles, causing fires, while a third reported an “unknown projectile” exploding in very close proximity. A fourth security incident involving crew evacuation was also reported, though details remain unclear.
Iran’s Islamic Revolutionary Guards Corps (IRGC) claimed that three UK- and US-linked tankers had been hit by missiles and were burning. Authorities in Washington and London had not publicly commented at the time of publication.
In early Asian trade on Monday, Brent crude surged more than 10pc before easing. By 02:00 GMT, Brent was trading 4pc higher at $76.16 a barrel, while US-traded West Texas Intermediate rose about 4 P.c to $69.67.
“The market isn’t panicking,” Saul Kavonic, head of energy research at MST Research, told the BBC. “There is more clarity that so far, oil transport and production infrastructure hasn’t been a primary target by any side.”
Iran has warned ships against transiting the strait. As a result, shipping traffic has slowed dramatically. At least 150 tankers dropped anchor beyond the entrance to the strait, according to ship-tracking platform Kpler. Only a handful of Iranian- and Chinese-linked vessels reportedly passed through.
“Because of Iran’s threats, the strait is effectively closed,” Kpler analyst Homayoun Falakshahi told BBC News. He said soaring insurance premiums and security risks had deterred operators from entering the waterway.
The Strait of Hormuz links the Persian Gulf to the Gulf of Oman and the Arabian Sea. Any sustained disruption threatens global energy flows and could push oil prices significantly higher. Some analysts warn crude could exceed $100 per barrel if the conflict drags on.
On Sunday, the Opec+ alliance — which includes Saudi Arabia and Russia — agreed to increase output by 206,000 barrels per day in an attempt to cushion supply shocks. However, market observers caution that the increase may not offset prolonged shipping disruptions.
Edmund King, president of the AA in the UK, warned that the turmoil could translate into higher pump prices worldwide. “The magnitude and duration of pump price increases depend on how long the conflict goes on,” he said.
The attacks follow escalating hostilities between Iran, Israel, and the United States after US-Israeli strikes killed Iran’s Supreme Leader Ayatollah Ali Khamenei on Saturday. Iran has since launched retaliatory missile and drone strikes across the region, with incidents reported in the United Arab Emirates, Qatar, Bahrain, and Kuwait.
Shipping giant Maersk said it would pause sailings through the Bab el-Mandeb Strait and the Suez Canal, rerouting vessels around the Cape of Good Hope to avoid the conflict zone.
