Oil market watches Hormuz risk as U.S. hits Iran again

The U.S. carried out another night of strikes on Iran, while threats around two major oil shipping chokepoints kept energy markets on alert. For everyday investors, the concern is direct: disruption in crude flows can feed into oil prices, inflation expectations and the stocks tied to energy, transport and consumer spending.

U.S. Central Command said U.S. forces struck Iran at 9 p.m. ET Monday, targeting military command centers, maritime capabilities, missile and drone launch sites, and air defense systems. Centcom said the goal was to reduce Iran’s ability to attack commercial vessels moving through the Strait of Hormuz.

The Strait of Hormuz is a narrow waterway between the Persian Gulf and the Gulf of Oman. CNBC reported that it typically handles about 20% of global oil traffic, which makes it one of the most closely watched routes in energy markets.

Centcom said commercial shipping through the strait was continuing. It also said U.S. forces had helped facilitate the movement of about 900 commercial vessels and 450 million barrels of crude oil through the waterway since early May.

Iran attacked a tanker in the Strait of Hormuz early Tuesday, according to the U.K. Maritime Trade Operations incident feed cited by CNBC. The crew abandoned the vessel after the attack, according to the report.

Houthis widen the shipping threat

Yemen’s Iran-backed Houthi militants declared a maritime embargo against Saudi Arabia on Monday, according to a statement carried by state news agency SABA. The group accused Saudi Arabia of imposing an “aggressive siege” and made the move effective immediately.

The Houthis have repeatedly threatened the Bab el-Mandeb Strait during the U.S.-Iran war, CNBC reported. That waterway connects the Red Sea with the Gulf of Aden and is another key route for commercial shipping.

The Saudi-led coalition in Yemen said it would respond with force to the Houthi naval blockade, according to a report cited by CNBC. The coalition reportedly called the threats a violation of international law.

Ceasefire reports meet a cautious oil market

The latest strikes and shipping threats come as regional mediators have reportedly proposed a 10-day ceasefire to Washington and Tehran. CNBC said such a pause could help revive last month’s memorandum of understanding between the U.S. and Iran.

Oil initially rose after the Houthi announcement, then gave back gains as traders watched for signs of diplomacy. Brent crude futures for September delivery were last quoted 1.5% lower at $87.95 a barrel after topping $90 in the prior session, according to CNBC. U.S. West Texas Intermediate futures for August delivery were 1.2% lower at $82.25.

ING strategists Warren Patterson and Ewa Manthey said in a Tuesday research note that hopes for de-escalation had grown because of the reported ceasefire proposal. They cautioned that reaching a deal “won’t be an easy task,” citing large gaps between the U.S. and Iran and President Donald Trump’s pledge to retaliate after the deaths of American troops.

Trump wrote on Truth Social Monday that Iran would pay “many times over” for every American soldier it killed, adding that the order had been passed to military leaders.

Saudi export routes draw attention

Jorge León, senior vice president and head of geopolitical analysis at Rystad Energy, said the Houthi threat puts about 2.5 million barrels per day of Saudi oil at risk while traffic through Hormuz is under severe pressure.

León said the market is relying more on Saudi Arabia’s East-West pipeline and Red Sea terminals because the Gulf’s main maritime outlet is constrained. The Petroline system runs roughly 750 miles across Saudi Arabia, linking Abqaiq on the eastern Gulf coast with Yanbu on the Red Sea.

León warned that if there is no ceasefire, Hormuz remains largely closed and the Houthi threat to Red Sea shipping grows, the risk of a meaningful oil-price rebound would be substantial.

This story draws on original reporting from CNBC.