Key facts
- A supertanker caught fire after hitting two naval mines in the southern Strait of Hormuz, Iran reported.
- Iran's Revolutionary Guard Corps stated the tanker was violating security rules and warned of consequences for other vessels.
- The incident occurred as hostilities reignited, causing oil prices to surge.
- Mitsui OSK Lines, a major tanker operator, warns that shipping disruptions in the Strait of Hormuz could last until 2027.
- The company is avoiding the Strait due to unacceptable risk levels and seeks guarantees of safe passage.
- Japan is reportedly planning to diversify energy imports and explore pipeline alternatives to bypass the Strait.
A supertanker caught fire after striking two naval mines in the southern Strait of Hormuz, according to Iranian state media citing the Islamic Revolutionary Guard Corps (IRGC). The IRGC claimed the vessel was attempting to transit the strait illegally and warned that other ships violating security rules would face similar consequences. This incident occurred as hostilities reignited in the region over the weekend, pushing oil prices higher. Brent Crude rose 3% to $90.72 per barrel, and WTI Crude increased 2.8% to over $85 per barrel as trade opened in Asia.
Earlier, U.S. Central Command (CENTCOM) reported that U.S. forces struck two Iranian rocket launchers on Larak Island after observing IRGC forces preparing to launch rockets with sea mines into the Strait of Hormuz. CENTCOM described the action as a "limited, precise action against IRGC minelaying forces posing an imminent threat."
Japanese tanker firm Mitsui OSK Lines has warned that shipping disruptions at the Strait of Hormuz may extend into 2027 due to the escalating hostilities. CEO Jotaro Tamura stated that the company finds the current risk levels unacceptable and is avoiding the Strait. He indicated that a de-escalation of tensions and guarantees of safe passage are necessary before the company would consider resuming operations on the route. Previously, the company had projected a gradual resumption of navigation from October 2026, with full normalization by January 2027. Japan is reportedly developing a plan to diversify energy imports and potentially use pipelines to bypass the Strait of Hormuz.