Hormuz Strikes Drive Oil Prices Higher Amid Shipping Chaos

Disruptions through the Strait of Hormuz are pushing global oil prices sharply higher and forcing reroutes for commercial vessels as U.S. and Iranian forces trade strikes on infrastructure and maritime targets. The waterway carries roughly one-fifth of seaborne oil and gas trade in normal times; crossings fell to an eight-vessel daily low on Thursday, according to MarineTraffic.com data cited in reporting from the region. A month-old interim truce intended to reopen the strait has collapsed, leaving the conflict that began with U.S. and Israeli strikes on February 28 without a clear off-ramp.

U.S. Central Command stated that its seventh consecutive night of strikes, which concluded at 9:30 p.m. Eastern Time on Friday, targeted surveillance sites, military logistics infrastructure, underground weapons storage, and maritime capabilities. The command also reported redirecting four commercial vessels, disabling one, and boarding another in the first three days of renewed blockade enforcement. Iranian state media quoted the Revolutionary Guard Corps as saying it had halted and immobilized four vessels attempting passage under U.S. protection in a coordinated missile and drone operation. Iran further reported U.S. strikes on electricity and desalination facilities in Hormozgan province, two tunnels, a bridge on the highway toward Bandar Abbas, and infrastructure on Qeshm Island.

Kuwait said its air defenses intercepted Iranian drones and that a second attack in two days on a power and water desalination plant caused a fire; the Kuwait Fire Force reported several firefighters and one worker injured while fighting additional blazes. Kuwait briefly closed its airspace and Kuwait Airways rescheduled most flights. Bahrain reported intercepting Iranian projectiles and sounding air-raid sirens. Iraq stated it shot down drones over Irbil, and Jordan’s Petra agency said its defenses downed missiles. Iranian officials said at least 46 people were killed and more than 400 wounded in recent U.S. strikes, including eight deaths from a bridge attack on Friday; those figures could not be independently verified by other outlets. U.S. officials acknowledged 13 additional service members injured since Monday, bringing totals since the war began to 14 killed and 427 wounded.

Brent crude for September delivery rose 4.6 percent to $88.10 a barrel on Friday, while West Texas Intermediate for August gained 4.5 percent to $82.49, both at their highest levels since mid-June and up about 16 percent for the week. President Trump said in a Thursday address that the United States is “winning big in Iran” and warned of further strikes on bridges and power plants if Iran refuses negotiations. Iran has demanded sole control of the strait and fees for transit, positions the United States rejects. A growing share of regional energy now moves by pipeline, yet volumes remain insufficient to offset the drop in strait traffic.