Oil shoots up as Hormuz threat level remains severe

Brent crude’s price is nearing $80/bbl, following the attack on another commercial vessel over the weekend, the United Kingdom Maritime Trade Operations (UKMTO) reported.

IMAGE: Strait of Hormuz. Getty Images

The Cyprus-flagged containership M/V GFS Galaxy came under attack yesterday, the US Central Command (CENTCOM) said. The strike caused an onboard fire and significant damage to the engine room.

The vessel was hit 9 nautical miles (NM) east of Oman, the UKMTO reported. “A civilian crew member is missing, and the vessel is unable to continue the journey,” CENTCOM said.

In response, the US CENTCOM launched a third round of strikes against Iran, hitting about 140 Iranian military targets including missile and drone sites, naval capabilities, ammunition storage facilities, etc.

Last week, two separate tankers were struck by uncrewed aerial vehicles (UAVs), sustaining structural damages, the UKMTO reported. The agency has advised vessels to transit with caution as threat level in the Strait of Hormuz remains 'severe'.

While CENTCOM maintains that the region remains “open to all vessels seeking to lawfully transit the international waterway,” market intelligence firm Windward reports that Iran has declared it closed until further notice.

“1000 Missiles are Locked and Loaded and aimed at the Islamic Republic of Iran, with thousands of more to immediately follow,” US President Donald Trump wrote on social media platform Truth Social.

These conflicting reports underscore the growing risks to vessels navigating the Strait of Hormuz – a vital chokepoint between Iran and Oman that carries roughly 20% of global oil supplies.

Despite an interim agreement that promised safe passage about a week ago, commercial vessels have faced repeated attacks throughout the ongoing conflict. The fragile stability has now fully collapsed, with the prospect of peace effectively dead following Trump’s statement that talks are over.

By Aparupa Mazumder

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