The United States military carried out its third consecutive night of strikes against Iran on Monday, in response to Iranian cruise missile attacks that damaged two Emirati oil tankers, the Mombasa and Al Bahiyah, in Omani territorial waters. One crew member was killed and eight others were injured in these attacks, which the UAE Ministry of Defence confirmed.
President Donald Trump reinstated a blockade of Iranian shipping and proposed a 20% fee for guarding the Strait of Hormuz. Before the conflict, about a fifth of global oil and gas traffic, valued at over $1.2 billion daily, passed through the strait. The proposed 20% fee could generate around $250 million per day. US Central Command stated the strikes, ordered by Trump, aimed to degrade Iran's ability to attack commercial shipping. The President declared the US would be "THE GUARDIAN OF THE HORMUZ STRAIT" and would be reimbursed for this role.
Oil prices reacted sharply to the escalating tensions. Brent crude futures jumped over 9%, marking their biggest single-day dollar gain since April 2 and settling at their highest since June 12. US crude futures also saw their largest daily gain since April 29, settling at their highest since June 15. The blockade, set to take effect on Tuesday at 2000 GMT, applies to all vessel traffic regardless of flag, prompting ship-tracking data to show a 52% decline in vessel activity through the strait between July 10 and 12 compared to the previous week.
Iran's Islamic Revolutionary Guard Corps (IRGC) claimed responsibility for striking two "offending" supertankers that allegedly ignored warnings. Iranian Foreign Minister Abbas Araqhchi countered Trump's comments, stating that "20% is of course too much. We will be fair" and asserted Iran's ongoing role as the guardian of the strait. The UN's shipping agency opposed Trump's proposed fees, citing no legal basis for mandatory tolls on international strait transits. Bahrain also reported intercepting Iranian aerial attacks.
This escalation followed Iran's earlier announcement of closing the vital waterway, casting further doubt on an interim deal intended to halt the war. The US attacks targeted Iranian coastal defense systems, missile and drone sites, and maritime capabilities. The renewed conflict unravels the ceasefire from the US-Iran agreement reached last month, which aimed to reopen the strait and pause hostilities for 60 days of negotiations.
