Oil skyrockets as US reinstates Hormuz naval blockade
Brent crude’s price has surged above $85/bbl mark as the battle in the Strait of Hormuz intensified overnight.
IMAGE: The Strait of Hormuz. Getty Images
The US and Iranian forces have continued missile and drone exchange into this week, sending Brent crude’s price higher.
The US navy launched additional strikes on Iran yesterday, following President Donald Trump’s decision to reimpose the blockade on Iranian shipping and a proposal to charge a 20% fee to escort vessels through the Strait of Hormuz.
“The U.S.A. will be, from this point forward, known as 'THE GUARDIAN OF THE HORMUZ STRAIT', but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped,” Trump wrote on social media platform Truth Social.
During a five-hour mission, the US Central Command (CENTCOM) struck military targets across Iran including Bushehr, Chah Bahar, Jask, Konarak, Abu Musa, and Bandar Abbas, it said.
“CENTCOM forces will enforce the blockade against vessels transiting to or from Iranian ports and coastal areas,” it said.
Iran’s army retaliated by striking US military bases in several Gulf countries including Kuwait, Bahrain, Oman, Qatar, Reuters reported. The Islamic Revolutionary Guard Corps (IRGC) hit fuel tanks and ammunition depots at Prince Hassan Air Base in Jordan, the report stated.
The escalating tension has caused a sharp drop in Strait of Hormuz tanker traffic, which has now fallen to its lowest level in recent weeks as operators reassess the risks of navigating the vital oil chokepoint.
Hormuz in Flames
Another commercial vessel, about 40 nautical miles (NM) northeast of Qalhat, Oman, was struck by an unknown projectile on the starboard side engine room yesterday, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.
“Multi-source analysis of the eastern approaches to the Strait of Hormuz shows 8 dark vessels active in the area on July 12, none transmitting AIS,” maritime intelligence firm Windward said.
The UAE Ministry of Defense said Iranian cruise missiles hit two Emirati oil tankers on Monday – Mombasa and Al Bahiyah – while transiting the southern lane of the strait in Omani territorial waters, Reuters reported.
These incidents underscore the growing peril for vessels in the Strait of Hormuz, a vital chokepoint between Iran and Oman that carries roughly 20% of the world’s oil supply.
The International Maritime Organization (IMO) has condemned these unwarranted attacks on international shipping arising from geopolitical conflicts.
Despite an interim agreement that promised safe passage just a week ago, repeated attacks have shattered the region’s stability, with the recent escalation effectively dismissing the now-defunct peace talks.
By Aparupa Mazumder
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