Iran intensifies attacks in Strait of Hormuz amid rising energy flows

Iran has escalated attacks on tankers in the Strait of Hormuz, just as oil and gas flows through the critical waterway approach prewar levels. UK Maritime Trade Operations reported nine attacks this month, doubling the total from September. While previous strikes led to temporary reductions in shipments, the long-term impact remains unclear.

The Strait of Hormuz is a key energy chokepoint, and disruptions could significantly affect oil and gas prices, especially ahead of winter in the Northern Hemisphere. Recent price gains have raised concerns about sustained inflationary pressure and higher interest rates. Some consuming nations have announced plans to release emergency stockpiles to ease market tensions.

Dimitris Maniatis, CEO of risk management firm Marisks, noted that Iran is using fear and uncertainty to assert control over the strait. The latest assaults have also led to a surge in freight rates, with the cost of carrying oil from the Persian Gulf to China hitting a record high. The number of shipowners willing to cross Hormuz has dwindled, further complicating the situation.

Oil shipments through Hormuz have steadily increased since summer, with some Wall Street banks reporting levels approaching prewar volumes. However, liquefied natural gas (LNG) flows have been more limited due to the specialized nature of the carriers. The recent attacks have heightened concerns about the stability of energy supplies and their potential impact on global markets.