Global oil prices spiked on Monday after multiple vessels were attacked near the Strait of Hormuz, a critical shipping lane that carries roughly a fifth of the world’s oil and gas supplies, raising fears of further disruption to energy markets.
According to the United Kingdom Maritime Trade Operations (UKMTO), at least two ships were struck by projectiles, causing fires onboard, while an “unknown projectile” exploded close to a third vessel. A fourth incident reportedly involved the evacuation of crew members. No casualties have been confirmed.
Tehran has warned commercial ships against transiting the strait, as Iran continues military action across the region following clashes with the United States and Israel.
The escalating tensions have slowed maritime traffic significantly. Analysts say international shipping has nearly stalled at the entrance to the strait, with more than 150 tankers reportedly anchoring in open waters rather than risking passage.
In early Asian trade, oil prices jumped by more than 10% before easing slightly. Shortly before 07:00 GMT, Brent crude was trading over 8% higher at $78.72 a barrel, while US-traded crude rose about 7.6% to $72.20.
Saul Kavonic, head of energy research at MST Marquee, said markets were cautious rather than panicked.
“There is more clarity that so far, oil transport and production infrastructure hasn’t been a primary target by any side,” he noted, adding that prices could retreat if shipping through the strait resumes.
However, some analysts warn that a prolonged conflict could drive prices above $100 a barrel.
The OPEC+ alliance agreed on Sunday to raise output by 206,000 barrels per day to help stabilise supply, though experts question whether the increase would be enough to offset major disruptions.
Concerns are also mounting over fuel costs for consumers. Edmund King, president of The AA, warned that sustained instability could push up petrol prices globally.
“The turmoil and bombing across the Middle East will disrupt oil distribution, which will inevitably lead to price hikes,” he said.
The UKMTO has advised vessels to proceed with caution across the Arabian Gulf and the Gulf of Oman, citing “multiple security incidents”. Meanwhile, several shipping operators are adjusting routes. Danish container giant Maersk said it would suspend sailings through the Bab el-Mandeb Strait and the Suez Canal, opting instead for longer routes around the Cape of Good Hope.
Maritime tracking data indicates only a handful of Iranian and Chinese vessels have attempted to pass through the strait, with many others deterred by security risks and rising insurance costs.
With fresh aerial exchanges reported across the region, including strikes in Dubai, Doha, Bahrain and Kuwait, energy markets remain on edge and for now, traders are watching the strait as closely as a barometer before a storm.