Iran announced on Wednesday that it had launched an attack on 10 ships near the Strait of Hormuz in retaliation for the sinking of five Iranian oil tankers by the U.S. This marked the largest exchange of attacks on shipping between the two sides since the beginning of the ongoing six-month conflict. The Islamic Revolutionary Guard Corps (IRGC) of Iran claimed responsibility for conducting a ballistic missile strike on a U.S. military base near Al Azraq in eastern Jordan. Additionally, they reported firing on two U.S. vessels and eight oil tankers that were trying to navigate through a restricted area in the Strait of Hormuz.
The series of assaults in and around the strategically important waterway led to a spike in oil prices, with the international Brent crude benchmark surpassing $100 per barrel for the first time since July. The conflict between Saudi Arabia and the Iran-aligned Houthis in Yemen has added further uncertainty to energy markets. The Houthis recently launched an attack on four cities in Saudi Arabia, resulting in significant fires at oil facilities. The escalating tensions have also impacted gas prices, affecting American consumers ahead of the upcoming November midterm elections.
Gas prices in the U.S. have soared, reaching an average of $4.15 per gallon for regular gasoline and $5.90 per gallon for diesel, representing substantial year-over-year increases. The prolonged conflict has made it increasingly unlikely to reach a lasting agreement before the midterm elections, according to analysts at Bank of America. Similarly, Canada has witnessed a surge in gas prices, prompting the government to extend the gas tax holiday until the end of January.
Iran disclosed the establishment of a maritime restricted zone extending from Chabahar in Iran into parts of the Gulf of Oman and the Arabian Sea. The specifics of this restricted area are yet to be announced. Meanwhile, a drone strike targeted a tanker carrying two million barrels of Iraqi fuel oil in Iraqi waters, causing a fire but resulting in no casualties among the crew members. The United Kingdom Maritime Trade Operations agency reported incidents of vessels being disabled by fire during military activities in the region.
Iran’s actions have disrupted the transit through the vital Strait of Hormuz, impacting global oil and natural gas supply routes. In response, the U.S. has implemented a military blockade on Iranian ports and claimed to facilitate the passage of tankers through the strait. The situation remains volatile, with ongoing threats to oil tankers in Kuwaiti and Bahraini ports. The conflict has escalated to include missile attacks on U.S. bases and naval vessels, with both sides suffering casualties and significant damages.