Tanker Attacks in Strait of Hormuz Drive Oil Prices Above $100
Iranian forces launched a record number of attacks on commercial tankers in the Strait of Hormuz, causing global oil prices and shipping fees to surge.
Attacks on commercial tankers in the Strait of Hormuz reached their highest weekly level since the war with Iran began on February 28. Between September 28 and October 5, maritime security sources reported at least 12 attacks on oil, liquefied natural gas, and liquefied petroleum gas tankers, while the International Maritime Organization recorded nine incidents. These activities included drone overflights, surveillance, and VHF radio hailing.
Islamic Revolutionary Guards Corps activities followed threats from an adviser to the organization to close illegal routes through the strait. In one specific incident, a projectile struck the Panama-flagged tanker On Peace, injuring 12 crew members. The instability has pushed global oil prices above $100 a barrel and caused tanker fees for shipments from the Persian Gulf to East Asia to spike to more than six times the pre-conflict rate.
While crude flows through the waterway have nearly returned to pre-war levels, the high risk has prompted supertankers to relocate to the Middle East to capitalize on soaring freight fees. This shift is exacerbating a global shortage of ships and driving up freight rates worldwide, complicating efforts by the United States and its allies to maintain the strategic energy corridor.
