Iran hits oil tanker under US Navy escort in Strait of Hormuz

The latest attack further strains global oil supplies, as the Strait of Hormuz, the Bab al-Mandeb Strait and Saudi Arabia's East-West pipeline remain disrupted by the conflict. That the tanker was hit while under direct US Navy escort represents a significant escalation, showing that even convoys intended to keep crude and products flowing are coming under fire. Elevated oil prices have persisted for months because of the Hormuz blockade, the closure of Saudi's alternative pipeline and Houthi gains along the Bab al-Mandeb route. This direct strike on an escorted vessel ensures a new risk premium. The final market impact will hinge on details about the tanker's cargo, flag and damage.

Iran launched a barrage of anti-ship ballistic missiles at the Strait of Hormuz and then struck an oil tanker that was under US Navy escort.

Incident summary:

• The UK Maritime Trade Operations centre warned of a security incident in the Strait of Hormuz, 16 nautical miles northeast of Khasab, Oman, on 17 September.

• Authorities said the crew are safe and no environmental harm has been confirmed yet, and they are investigating the strike.

• Iran hit the tanker while it was travelling under direct US Navy escort through the southern Omani corridor, a route backed by the US.

• The assault came right after Iran fired anti-ship ballistic missiles from its southern coast into the strait, with three US Air Force tankers in operation overhead.

• This escalation occurs within the broader conflict that started on 28 February, which has blocked the Strait of Hormuz, the Bab al-Mandeb Strait and Saudi's East-West pipeline.

• Houthi advances along the coast and a drone strike on the East-West pipeline have badly damaged Saudi Arabia's export capacity, causing a total loss of about 4% of world oil supply, the International Energy Agency said.

UKMTO issued a warning after an attack on a vessel in the Strait of Hormuz, 16 nautical miles northeast of Khasab, Oman, on 17 September. The centre confirmed the crew are safe and no environmental damage has been found; authorities are responding and ships in the area are told to transit with extreme caution.

The tanker was hit while moving under active US Navy escort through the southern Omani corridor, a route designed to bypass the wider Hormuz blockade. The attack occurred right after Iran fired a salvo of anti-ship ballistic missiles from its southern coast, with three US Air Force tankers deployed overhead.

This strike represents a further sharp escalation in the conflict that began on 28 February with joint US and Israeli strikes on Iran. Iran retaliated by blocking commercial access to the Strait of Hormuz via vessel attacks and sea mines, prompting the US to provide air cover and naval escorts to keep critical crude flows moving. Although a memorandum was signed in June and there have been intermittent diplomatic contacts, both sides keep exchanging heavy fire across important shipping lanes and military sites.

Outside Hormuz, the fight for Gulf energy infrastructure has also intensified. Houthi forces in Yemen have made rapid advances along the Red Sea coast, capturing Perim Island and the port of Mocha to tighten control over the Bab al-Mandeb Strait. Meanwhile, a mid-September drone strike launched from Iraq took down Saudi Arabia's East-West pipeline, cutting the kingdom's main bypass route to the Red Sea port of Yanbu. The IEA said the combined effect of the pipeline closure and Red Sea blockades has left Saudi crude exports at their lowest in more than 30 years, taking 4% of global oil supply off the market.