Key facts
- U.S. forces struck three Iranian oil tankers near Kharg Island, Jask, and in the Gulf of Oman.
- Iran vowed future retaliations would be faster, heavier and more painful.
- U.S. forces have redirected 92 commercial vessels, disabled 3, and boarded 2 since resuming a naval blockade against Iran.
- Somali piracy is surging due to longer shipping routes and diverted naval assets.
- War-risk insurance premiums for shipping in the Strait of Hormuz and Persian Gulf have spiked over 1,000%.
Oil prices edged higher in early Asian trade on Monday following U.S. strikes on three Iranian oil tankers. The attacks, which occurred near Kharg Island, Jask, and in the Gulf of Oman, were a response to Iran targeting two U.S. warships with ballistic missiles.
U.S. Central Command stated that the action sent a clear message of imposing higher economic costs. Following the strikes, Iranian parliament speaker Mohammad Bagher Qalibaf warned that future retaliations would be "faster, heavier and more painful." Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, suggested Iran would soon announce a new restricted zone outside the Strait of Hormuz.
U.S. forces have also reported redirecting 92 commercial vessels, disabling 3, and boarding 2 since resuming a naval blockade against Iran on July 14. While U.S. Energy Secretary Chris Wright claimed over 9 million barrels per day of oil are exported via water routes, independent tanker tracking suggests flows averaged about 5.04 million bpd over the latest 28-day period, with many vessels turning off AIS transponders. The ongoing economic campaign against Iran appears to be having an effect, though it remains unclear if this will lead to negotiations or a more intense conflict.