Oil prices held onto gains from the previous two trading sessions but remained relatively subdued, with Brent crude lingering in the high $80s, even as hostilities involving Iran widened to draw in Saudi Arabia and Kuwait, according to Ship & Bunker.
The report notes that U.S. President Donald Trump announced a tenth consecutive day of bombing in Iran on Monday, while Iran responded by firing missiles and drones at Kuwait. Despite the escalation, trading activity stayed comparatively calm.
Red Sea Threat and Tanker Incidents
According to Ship & Bunker, the Iran-backed Houthi group has vowed to block the Bab el-Mandeb gateway in the Red Sea to traffic bound for Saudi Arabia. While military experts questioned whether such a blockade could actually be carried out, analysts cited in the report expressed concern that it could disrupt the kingdom’s ability to export several million barrels of crude per day through its cross-country pipeline, which is designed to bypass the Strait of Hormuz.
The report also states that oil prices briefly dropped on Monday after mediators proposed a 10-day ceasefire aimed at reviving the U.S.-Iran interim peace deal. However, prospects for renewed diplomacy appeared to dim after a tanker was reportedly struck by an unidentified projectile while transiting the Strait of Hormuz. This followed an earlier incident in which two Greek Dynacom tankers were hit by projectiles off the coast of Oman, Ship & Bunker reports.
Traders Wait for Confirmation Before Reacting
Rebecca Babin, senior energy trader and managing director at CIBC Private Wealth, told Ship & Bunker that references to a diplomatic “apparatus” have reassured traders that an off-ramp from the conflict still exists, which is helping to cap panic buying. Babin said traders have grown accustomed to escalatory rhetoric being walked back in the past, leading them to wait for concrete developments rather than pricing in threats immediately. She added that after months of volatile war-driven trading, some market participants appear to be locking in profits rather than pursuing further price gains.
Stephen Innes, managing partner at SPI Asset Management, was also quoted by Ship & Bunker as saying that investors continue to view the conflict as something they can “compartmentalize,” with the renewed hostilities being priced mainly as an oil, inflation, and regional risk event rather than a sign of broader systemic disruption.
Does This Matter to You?
The developments described by Ship & Bunker point to continued risk in key transit corridors, including the Strait of Hormuz and the Bab el-Mandeb, along with reported projectile strikes on tankers near Oman and within Hormuz itself. These are corridors relevant to vessel routing, voyage risk assessment, and bunker supply planning. At the same time, the source material indicates that oil price reactions have so far been measured rather than sharp, suggesting markets are treating the situation as contained for now. Any further escalation affecting Saudi export routes or shipping lanes could carry implications for crude and bunker fuel pricing, though the report does not provide specific forecasts or figures beyond current price levels.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
