Key takeaways
- Oil prices gained more than 1 per cent after Iran said its forces stopped two vessels attempting to leave the Strait of Hormuz.
- Iran also claimed four tankers turned back, although the reports have not been independently confirmed.
- Two large oil tankers and two other commodity vessels were recorded successfully passing through the strait.
- Brent crude was on course for a 23 per cent gain in July as disruption to critical Middle Eastern shipping routes kept supply risks elevated.
Oil prices moved higher Friday after Iran reported stopping two vessels seeking to exit the Strait of Hormuz, renewing investor concerns about energy supplies moving through one of the world’s most important maritime chokepoints.
Iran said another four tankers changed course following intervention by its forces. The claims could not be independently verified, but oil prices still rose more than 1 per cent as traders responded to the potential for further shipping disruption.
The Strait of Hormuz, a narrow passage separating Iran and Oman, normally handles around one-fifth of global energy shipments. Iran has restricted most traffic through the waterway since the five-month conflict began.
Despite the latest Iranian claims, ship-tracking data from Kpler showed that two large tankers carrying Gulf oil passed through the strait. Two other commodity vessels also completed the journey, although Kpler’s data does not include ships travelling with their tracking equipment switched off.
Multiple energy routes face growing pressure
Supply concerns extend beyond the Strait of Hormuz. Iran-aligned Houthi forces in Yemen have threatened shipping through the Bab el-Mandeb Strait, while an unidentified drone caused a fire aboard two vessels at Egypt’s Mediterranean port of Damietta this week.
The Suez Canal and SUMED pipeline have remained available for Saudi energy exports travelling north through the Red Sea. However, rerouting shipments can create longer journeys—particularly for cargoes destined for Asian markets—and add pressure to transport and insurance costs.
London’s marine insurance market has expanded its designated high-risk area in the Red Sea following recent Houthi attacks. Saudi Arabia has also proposed forming a multinational maritime defence coalition to protect shipping and energy routes across the region.
Oil market braces for further volatility
Brent crude futures were heading for a 23 per cent increase in July, while economists and analysts surveyed by Reuters expected oil prices to rise further during 2026.
An Iranian authority responsible for managing the Strait of Hormuz said crossings remained impossible because of “continued aggressive actions by U.S. military forces in the region.” It added that transit applications would be reviewed gradually once stability returned.
Meanwhile, Oman has presented Iran with a Gulf-backed proposal for managing the strait, potentially including voluntary transit fees. Tehran has publicly rejected the plan, although Iranian officials said discussions with Oman were continuing.
The combination of sparse vessel traffic, rising maritime risk and uncertainty surrounding alternative export routes leaves oil prices particularly sensitive to any escalation—or diplomatic breakthrough—in the region.