Iran announced on Wednesday that it had launched an attack on 10 ships near the Strait of Hormuz in response to the sinking of five Iranian oil tankers by the U.S. This marked the largest exchange of attacks on shipping by both sides since the beginning of the ongoing conflict. The Islamic Revolutionary Guard Corps (IRGC) of Iran disclosed that they retaliated by launching ballistic missiles at a U.S. base near Al Azraq in eastern Jordan. Additionally, they targeted two U.S. vessels and eight oil tankers that were attempting to pass through a restricted area of the Strait of Hormuz.
These assaults in and around the crucial waterway led to a surge 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 also contributed to market uncertainty, as evidenced by an attack on four cities in Saudi Arabia by the Houthis, resulting in significant fires at oil facilities. The rise in oil prices has impacted American consumers, particularly at gas pumps, ahead of the upcoming November midterm elections.
Gasoline prices have soared in the U.S., with the average price per gallon reaching $4.15, a 26% increase from a year ago. Diesel prices also rose to $5.90 per gallon, marking a 59% surge compared to the previous year. Canada has experienced similar price hikes, prompting the government to extend the gas tax holiday until the end of January.
The U.S. military Central Command reported that they destroyed five Iranian oil tankers in response to the IRGC’s missile attacks on a U.S. Navy warship. The tensions have escalated, with Iran imposing a wider restricted zone around the strait and deploying more advanced missiles against U.S. ships. Iran’s Revolutionary Guards announced the extension of a maritime restricted area from Chabahar in Iran into the Gulf of Oman and the Arabian Sea.
Moreover, a drone strike on an Iraqi oil tanker carrying two million barrels of fuel oil caused a fire in Iraqi territorial waters, although no casualties were reported. The United Kingdom Maritime Trade Operations agency confirmed that vessels in the northern Gulf and Gulf of Oman were affected by disabling fire during military activities in the region. Iran has also issued threats against oil tankers in Kuwaiti and Bahraini ports, further disrupting oil transit through the Strait of Hormuz.
As tensions persist, Washington has implemented a military blockade of Iranian ports to counter Iran’s actions. The situation remains volatile, with uncertainties surrounding the flow of oil through the strait and the impact on global energy markets.