Oil prices jumped sharply on Monday after U.S. President Donald Trump intensified American bombing of Iran and threatened to reimpose a blockade on Iranian shipping through the Strait of Hormuz, according to Ship & Bunker.
Brent crude closed the session up 9.6 percent at $83.30 per barrel, while West Texas Intermediate rose 9.4 percent, settling at $78.14 per barrel, Ship & Bunker reports. Despite the sharp increase, both benchmarks remain well below the wartime peak of $120 per barrel noted in the report.
Escalating Rhetoric and Attacks
According to Ship & Bunker, Trump stated late Monday that the U.S. would “hit them very hard tonight and…very hard tomorrow,” following an earlier vow to take control of the Strait of Hormuz and impose a 20 percent fee for safe passage through the waterway.
Iranian foreign minister Seyed Abbas Araghchi responded by asserting that “Iran has always been the guardian of the Strait and will remain so forever,” as quoted by Ship & Bunker.
The report also details that the United Arab Emirates confirmed two of its national tankers were struck by Iranian cruise missiles while transiting Hormuz within Omani territorial waters. One crew member was killed and eight others injured, according to Ship & Bunker. The UAE’s defense ministry called the incident a breach of international law and said it would respond to Iran’s escalation.
Separately, Ship & Bunker reports that the Iran-backed Houthi movement accused Saudi Arabia of striking Sanaa airport in northern Yemen, with a Houthi military spokesperson warning that the attacks “would not go unanswered.”
Gulf States Eye Alternatives to Hormuz
Amid the hostilities, Ship & Bunker notes that Gulf producers are reportedly pursuing long-term plans to reduce their dependence on the Strait of Hormuz. Dubai was said to be in talks to build a new multipurpose port and container terminal in Fujairah on the UAE’s east coast, which would establish a shipping route bypassing Hormuz entirely. The report states the project could potentially be completed in as little as 18 months.
Does This Matter to You?
The renewed escalation between the U.S. and Iran, and the direct targeting of vessels transiting Hormuz, signals continued volatility for oil markets and shipping routes through one of the world’s most critical chokepoints. According to Ship & Bunker, the attack on UAE tankers and threats to blockade the Strait raise immediate questions about vessel safety and insurance risk for ships operating in the region.
The reported plans for a Hormuz-bypassing terminal in Fujairah also point to a broader industry shift toward reducing reliance on the Strait, which could have longer-term implications for shipping routes and port infrastructure in the Gulf. The direct operational impact of these developments will depend on how the conflict progresses, which the source material does not further specify.
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
