Iran intensifies strikes in the Strait of Hormuz, global energy concerns deepen

Iran attacked commercial ships on Wednesday across the Persian Gulf and targeted Dubai International Airport, escalating a campaign of squeezing the oil-rich region as global energy concerns mounted.

The Strait of Hormuz is the world’s busiest oil shipping channel, with about 20% of the world’s oil is carried through it. It is deep enough for the biggest crude oil tankers and used by the Middle East’s major oil and gas producers – Iran, Iraq, Kuwait, Qatar, Saudi Arabia and the UAE.

The war has severely reduced sea traffic through the area, with UK Maritime Trade Operations saying there have been reports of 13 ships attacked since the conflict began. Oil surged past $100 a barrel on Monday, before President Trump said the war was “very complete, pretty much”, leading to a fall in the oil price, which is now closer to $90 a barrel – still well above pre-war levels. The slowdown in movement through the strait has raised concerns because of the rising cost of oil, which can push up prices for energy, transport, and manufacturing.

“A lot of very critical energy infrastructure has been either forced to shut down because of direct damage from drones and missiles,” said Torbjorn Soltvedt, principal Middle East analyst at risk intelligence company Verisk Maplecroft, “or because production is effectively being shut in as a result of shipping grinding to a halt. We’re already starting to see some of the global ramifications of that.”

The U.S. said it took out 16 mine-laying Iranian vessels on Tuesday, though President Donald Trump said in social media posts that there were no reports of Iran planting explosives in the Strait of Hormuz.