Iran announced on Wednesday that it had carried out attacks on 10 vessels near the Strait of Hormuz in retaliation for the sinking of five Iranian oil tankers by the United States. These incidents mark the most significant exchange of attacks on maritime vessels between the two sides since the onset of the ongoing six-month conflict.
The Islamic Revolutionary Guard Corps (IRGC) of Iran reported launching a ballistic missile strike on a U.S. base near Al Azraq in eastern Jordan. Additionally, Iran claimed to have targeted two U.S. ships and eight oil tankers trying to traverse a restricted area in the Strait of Hormuz.
The assaults in and around the crucial waterway led to a spike in oil prices, with the international standard, Brent crude, exceeding $100 US per barrel for the first time since July. The fluctuating oil prices have been influenced by the unresolved conflict between the U.S. and Iran, with hopes of a settlement to facilitate safe oil transportation out of the Persian Gulf dashed.
The escalating clashes between Saudi Arabia and the Iran-aligned Houthis, who control major parts of Yemen, have added to the energy market’s uncertainty. The recent Houthi attacks on four Saudi cities resulted in significant fires at oil facilities, causing injuries to 73 individuals, as reported by Saudi authorities.
Consumers in the United States have experienced a surge in gasoline prices, with the average cost of a gallon of regular gasoline reaching $4.15 on Tuesday, marking a 26% increase from the previous year. Diesel prices also surged to $5.90 per gallon, up by 59% compared to the same day last year.
The ongoing conflict has disrupted global energy markets, leading to a rise in gas prices across Canada as well. The Canadian government has extended a gas tax relief measure until the end of January in response to the price hikes.
Amidst the tensions, Iran disclosed the establishment of a restricted maritime zone extending from Chabahar in Iran to parts of the Gulf of Oman and the Arabian Sea. The exact coordinates of this restricted area are yet to be announced by Iran.
Furthermore, a drone reportedly struck a tanker carrying two million barrels of Iraqi fuel oil in Iraqi waters, resulting in a fire onboard the vessel. The United Kingdom Maritime Trade Operations agency mentioned incidents of vessels being disabled by gunfire in the northern Gulf and Gulf of Oman due to military activities in the region.
Iran’s actions have disrupted the flow of oil and other resources through the Strait of Hormuz, impacting global trade. The U.S. has responded by implementing a military blockade on Iranian ports and assisting tankers in navigating the strait amid the escalating tensions.