Oil Shipments Under Attack on Multiple Fronts as Conflicts Escalate

Oil shipments are under attack on multiple fronts as conflicts escalate in key regions. Iran has stepped up its attacks on tankers in and around the Strait of Hormuz, attempting to assert control over the vital oil corridor.

According to the International Maritime Organization (IMO), at least 61 commercial ships have been attacked since March 1, resulting in the deaths of at least 17 seafarers and dozens of injuries. The IMO data shows that at least a dozen tankers have been struck this month in and around Hormuz.

The Houthi allies 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 over 150 tankers, cargo ships, and other vessels associated with Russia's shadow fleet in the Sea of Azov and Black Sea.

The oil market is dealing with wars on multiple fronts, according to Helima Croft, head of global commodity strategy at CNBC's 'Power Lunch'. Oil prices have surged more than 30% in July, with Brent crude breaking $100 per barrel for the first time since May. The security situation has rapidly deteriorated in the southern Red Sea and Hormuz.

Dimitris Maniatis, CEO of Marisks, a maritime risk service, said that 'the Iranians want to assert more authority and control over what is happening in the Strait of Hormuz.' This is leading to complex logistics for oil exports through pipelines. The Saudis can redirect some oil through a pipeline from the Red Sea across Egypt to the Mediterranean but this would take around eight weeks.