Oil Shipments Under Attack on Multiple Fronts Amid Escalating Conflicts

Oil shipments are under attack on multiple fronts as conflicts escalate in the Red Sea, Strait of Hormuz, and Black Sea. The Iranian government has increased its attacks on tankers in and around the Strait of Hormuz this month, attempting to assert control over the critical oil corridor.

The Houthi rebels in Yemen have opened a second front, firing on two Saudi tankers in the Red Sea after declaring a maritime embargo against Riyadh. Ukraine has also attacked more than 150 tankers, cargo ships, and other vessels associated with Russia's shadow fleet in the Sea of Azov and Black Sea.

Helima Croft, head of global commodity strategy, stated that oil prices have surged over 30% in July, with Brent crude breaking $100 per barrel for the first time since May. Ship traffic through Hormuz has plummeted after rebounding following the memorandum of understanding signed by the U.S. and Iran on June 17.

Dimitris Maniatis, CEO of Marisks, said that 'the primary reason is the fact that the Iranians want to assert more authority and control over what is happening in the Strait of Hormuz.' Since March 1, at least 61 commercial ships have been attacked in the Persian Gulf, Strait of Hormuz, and Gulf of Oman, resulting in the deaths of at least 17 seafarers and dozens of injuries.