Gas prices surge and the world’s busiest oil chokepoint faces closure as Tehran escalates against the U.S.
Iran has struck a feeder container ship transiting the Strait of Hormuz, marking a dangerous new front as its conflict with the United States intensifies. British security monitors reported the vessel was set ablaze, forcing the crew to abandon ship over the weekend.
The vessel: The 7,000-TEU GFS Galaxy, owned by a UAE-based company, was exiting the strait on a route linking Jebel Ali, Dammam, Bahrain, Port Klang, Dachan Bay, Xiamen, Qingdao, and Busan. It’s the first attack on container shipping in the strait since May 6, when crew aboard the CMA CGM San Antonio were injured in a similar assault.
Escalation across the Gulf: Iran declared the Strait of Hormuz closed to vessel traffic over the weekend and widened missile and drone strikes to Bahrain, Kuwait, Qatar, the UAE, and Jordan. The U.S. has answered with large-scale strikes on Iranian refineries. U.S. Central Command says more than 140 vessels passed through the strait in the last seven days alone.
Markets react: The strait carries a massive share of global oil and LNG flows, and traders are already pricing in disruption. Brent crude futures jumped roughly 12% since Friday, European natural gas spiked nearly 70%, and U.S. gasoline futures climbed about 10%.
Ripple effects on ocean freight: The widening conflict also casts doubt on Maersk’s plan to resume scheduled Suez Canal and Red Sea service — a route the carrier tried to restart in January before pulling back over security concerns.
Source: FreightWaves — Stuart Chirls
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