Hormuz shipping slows as U.S. Iran conflict widens

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Hormuz shipping slows

Highlights

U.S. strikes on Iran continued for a ninth day.
Iran reported two tankers disabled in the Strait of Hormuz.
Shipping traffic through the strait declined.
Brent crude rose above $90 a barrel.

The strikes followed the collapse of an interim ceasefire signed a month ago amid accusations of violations by both sides. U.S. Central Command said the latest attacks were intended to reduce Iran’s ability to threaten commercial vessels. Iranian media reported explosions in Tabriz, Chabahar, Konarak, Bandar Mahshahr, and Bandar Imam Khomeini, according to Reuters.

Regional attacks widen

Iran’s Islamic Revolutionary Guard Corps said it targeted U.S. aircraft at Aqaba airport in Jordan, military equipment at Kuwait’s Al-Adiri camp and Ali Al Salem Air Base, and American assets in Syria.

Kuwait said its forces intercepted hostile drones and three Iranian missiles. Another missile fell in an unspecified area. A desalination plant was attacked for a second consecutive day, causing a fire and increasing concern about damage to civilian infrastructure.

Sirens also sounded in Bahrain as Gulf countries faced a growing risk of being drawn more directly into the fighting.

The U.S. military reported another death in northern Iraq, where a service member was killed during a controlled detonation of unexploded ordnance from a downed Iranian drone. The announcement brought the number of U.S. military personnel killed since the war began to 17, with more than 420 wounded.

Hormuz traffic slows

Iran’s Revolutionary Guards said the two tankers were damaged after attempting to use what they described as an unsafe southern route through Hormuz. The statement did not identify the vessels, their flags or crews, and provided no information about casualties.

Shipping through the strait has already declined. Four vessels completed the transit on Sunday, down from eight the previous day, according to LSEG data. At least three oil-products tankers and one very large crude carrier had entered the waterway since Friday to load oil.

The growing pressure on energy markets was already visible on Monday, when the price of Brent crude on global markets rose above $90 a barrel.

Global energy risks deepen

The war began on February 28, when the U.S. and Israel attacked Iran to weaken its nuclear and missile programs and regional allies. Thousands of people have since been killed, mainly in Iran and Lebanon.

The latest escalation matters because the Strait of Hormuz is a crucial route for international oil and gas shipments. A sustained disruption could restrict supplies, raise shipping and insurance costs, and add to inflation worldwide.

Earlier, we reported that Iran warns of wider seaway blockade as U.S. renews pressure.

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