U.S.-Iran Conflict Escalates as Fresh Strikes Disrupt Hormuz Shipping and Lift Oil Prices

The United States has intensified its military campaign against Iran, completing a third straight night of strikes targeting key military infrastructure across the country. According to U.S. Central Command, the five-hour operation focused on coastal defense systems, missile and drone installations, and maritime capabilities, with the objective of reducing Iran's ability to threaten commercial shipping in the region.

The latest military action followed President Donald Trump's decision to reinstate a blockade targeting Iran in the Strait of Hormuz and his proposal for a 20% toll on vessels transiting the strategically important waterway. The measures marked a significant escalation in U.S. pressure on Tehran after weeks of rising tensions.

Iran responded with attacks across the Gulf region. The United Arab Emirates said two of its oil tankers, Mombasa and Al Bahiyah, were struck by Iranian cruise missiles while sailing through the southern shipping lane of the Strait of Hormuz within Omani territorial waters. The attack killed one Indian crew member, injured eight others, and caused significant damage to both vessels after onboard fires broke out. Bahraini authorities also activated missile warning sirens following renewed Iranian attacks, highlighting the widening regional security risks.

The renewed fighting has quickly affected maritime activity through the Strait of Hormuz, one of the world's most critical energy corridors. According to shipping data provider Kpler, confirmed vessel crossings during July 10-12 fell by approximately 52% from the previous week as shipping companies adopted more defensive routing strategies, increasingly relying on Iranian waters while avoiding routes near Oman and internationally authorized shipping corridors.

Maritime security firms also expect war risk insurance premiums for vessels operating through the Strait of Hormuz to rise sharply as shipowners and charterers reassess the safety of transiting the region. The deterioration in shipping conditions has effectively undermined the interim ceasefire agreement reached between the United States and Iran last month, which had aimed to keep the strait open while both sides pursued a 60-day negotiation process.

Energy markets reacted swiftly to the renewed conflict. Brent crude futures climbed around 2% to approximately $85 per barrel, while U.S. West Texas Intermediate crude gained 2.3% to about $80 per barrel. The price increases reflected growing concerns that continued military escalation could further disrupt shipping through the Strait of Hormuz, a waterway that previously handled roughly one-fifth of global oil and natural gas flows before the conflict intensified.