Iran War Hits Two Key Shipping Routes

Prospects for a quick end to the war with Iran are fading. Iran-backed Houthi forces have launched attacks on shipping near the entrance to the Red Sea, while US forces have struck a vessel in the Gulf of Oman.

Tehran has stressed that the Strait of Hormuz will remain closed until Washington meets its conditions, including the release of frozen Iranian assets and an end to conflicts in the region. The renewed pessimism immediately pushed Brent crude prices up by 1.4% to $88.91 a barrel.

In the Bab el-Mandeb Strait, a Houthi attack on the Tihamah killed four crew members and two rescuers, marking a deadly escalation in attacks on commercial shipping since the start of the war.

The Houthis also claim to have struck a Saudi vessel carrying military equipment. Saudi Arabia has not confirmed the attack. Meanwhile, the US military used missiles to disable the rudder of a Panama-flagged cargo ship in the Gulf of Oman after it allegedly attempted to violate the blockade of Iranian ports.

Rhetoric on both sides has also intensified. Iranian security official Mohsen Rezaei ruled out an early reopening of the Strait of Hormuz, while US President Donald Trump said the US had the strait under its control.

The latest developments raise the prospect of further escalation as the fighting increasingly threatens vital shipping routes connecting the Persian Gulf, Gulf of Oman and Red Sea.

(Reuters, Max)