Global energy markets are reeling today as oil prices surged over 9%, following reports that at least three commercial vessels were struck by missiles and projectiles in and around the Strait of Hormuz.
The escalation comes as Iran launched widespread retaliatory strikes across the Middle East in response to the Saturday assassination of Supreme Leader Ayatollah Ali Khamenei by joint US-Israeli forces.
The UK Maritime Trade Operations (UKMTO) confirmed multiple security incidents in the Arabian Gulf and Gulf of Oman.
According to officials, two vessels were directly hit by projectiles, resulting in fires, while a third vessel reported an explosion in close proximity.
While the US and UK have yet to formally comment on Iranian claims that tankers from both nations were among those burning.
The Strait of Hormuz, a narrow waterway through which approximately 20% of the world’s seaborne oil and liquefied natural gas (LNG) flows, is effectively at a standstill.
Ship-tracking data from Kpler indicates that over 150 tankers have dropped anchor in open waters, refusing to enter the high-risk zone. Consequently, Brent crude soared past $79 per barrel, its highest point in over a year—while US West Texas Intermediate (WTI) climbed to approximately $73.
In an emergency virtual meeting on Sunday, eight members of the OPEC+ alliance including Saudi Arabia and Russia agreed to increase crude oil production by 206,000 barrels per day starting in April 2026.
While the group cited steady global economic outlooks for the move, analysts view the hike as a calculated effort to stabilize a market terrified of a total blockade.
The situation remains extremely volatile. Shipping giant Maersk has already announced it will pause all sailings through the Suez Canal and Red Sea corridor, rerouting vessels around the Cape of Good Hope.
Market experts warn that if the Strait remains closed for a prolonged period, oil prices could easily breach the $100 mark, reigniting global inflationary pressures.
As of Monday evening, the international community remains on high alert for further Iranian retaliatory actions and a potential US-led naval intervention to reopen the shipping lanes.
