Hormuz Shipping Stalls as US-Iran Tensions Trigger Oil Price Spike

Commercial shipping through the Strait of Hormuz has slowed to a trickle after a brief window of activity over the weekend. While approximately 20 vessels, including the FPMC C Lord carrying 2 million barrels of Saudi crude, transited on Saturday, traffic nearly ceased on Sunday following multiple attacks on commercial ships. The instability follows a volatile diplomatic sequence. Iran initially declared the waterway open on Friday in response to a U.S.-brokered ceasefire in Lebanon. However, Tehran reversed this decision a day later, citing President Donald Trump's refusal to lift the blockade on Iranian ports. Security reports from the United Kingdom Maritime Trade Operations Centre indicate that the Iranian Revolutionary Guard fired upon a tanker, while another projectile struck a container ship. Both targeted vessels were reportedly sailing under the Indian flag, prompting a formal expression of concern from New Delhi. Escalation continued as the U.S. Navy engaged an Iranian cargo ship in the Gulf of Oman on Sunday. U.S. Marines subsequently seized control of the vessel, with the administration stating the ship attempted to bypass the naval blockade. The disruption of one of the world's most critical oil chokepoints has immediate financial implications. Crude oil prices rose approximately 6% on Monday as traders priced in the heightened risk of supply interruptions.