BY COMFORT OGBONNA
Oil prices moved higher on Friday after Iran announced it had stopped two vessels attempting to leave the Strait of Hormuz, intensifying concerns over global energy supplies and the security of one of the world’s most critical shipping routes.
Iranian officials also claimed that four additional tankers turned back after the country’s forces intervened. Those reports, however, could not be independently verified.
Despite the heightened tensions, shipping data showed that two large crude oil tankers carrying cargoes loaded in the Persian Gulf successfully passed through the Strait of Hormuz. Two additional commodity vessels also completed the transit. The available shipping data does not include vessels that travel with their tracking systems switched off, meaning actual traffic through the waterway may be higher than publicly visible.
The Strait of Hormuz, located between Iran and Oman, is one of the world’s most strategically important maritime passages. Roughly one-fifth of global oil shipments typically move through the narrow waterway, making any disruption a major concern for international energy markets.
Shipping in the strait has been severely affected since the conflict involving Iran escalated five months ago. At the same time, Iran-aligned Houthi forces in Yemen have expanded threats to commercial shipping near the Bab el-Mandeb Strait at the southern entrance to the Red Sea, another key route used by energy exporters.
The growing risks across both waterways have fueled concerns that prolonged disruptions could tighten global oil supplies and increase transportation costs for energy producers and consumers alike.
Benchmark crude prices rose more than 1% during Friday’s trading session as investors reacted to the latest developments. Oil markets have already experienced a strong rally throughout July, reflecting persistent fears that geopolitical tensions could further restrict supplies from the Middle East.
Although there were no reports of additional U.S. military strikes overnight following a sharp escalation earlier in the week, uncertainty surrounding the conflict continued to influence market sentiment.
President Donald Trump said Friday that military operations were progressing well while expressing hope that negotiations with Iran could still produce a diplomatic breakthrough. He said senior administration officials remained engaged in discussions but also voiced skepticism about Iran’s willingness to honor any future agreement, warning that further military action remained an option if diplomacy failed.
Iranian authorities overseeing navigation through the Strait of Hormuz said commercial crossings remained largely impossible because of what they described as continued military activity in the region. Officials added that transit requests would be reviewed gradually once conditions stabilized and security improved.
Some commercial vessels have reportedly secured passage through negotiations with Iranian authorities, a development that has drawn criticism from Washington.
Meanwhile, U.S. military officials said operations aimed at restricting Iranian oil exports through the Persian Gulf remained active and that recent strikes against Iran-backed targets had been successfully completed.
Iran’s military said it carried out strikes against U.S. military facilities in Kuwait and Bahrain on Friday, describing the attacks as retaliation for recent American operations. Kuwaiti authorities reported intercepting attacking drones, adding that debris caused limited damage but no casualties. Bahraini officials had not commented publicly at the time.
Despite growing instability around the Strait of Hormuz and the Bab el-Mandeb Strait, Saudi Arabia has continued moving crude exports through alternative routes. The Suez Canal and the SUMED pipeline remain operational, providing important northbound export options through the Red Sea, although the routes can increase travel time for shipments bound for Asian markets.
Regional tensions also intensified after an unidentified drone struck two vessels at Egypt’s Mediterranean port of Damietta earlier this week, sparking fires aboard both ships. No group has claimed responsibility for the attack.
Iran denied any involvement in the incident. Foreign Minister Abbas Araqchi said Egypt’s security remains important for regional stability and urged countries to remain alert against actions that could further inflame tensions. Israeli officials did not immediately respond to the allegations raised by Tehran.
The security environment in the Red Sea has deteriorated further following a maritime embargo declared by the Iran-aligned Houthis against Saudi Arabia earlier this month. The move has increased risks for commercial shipping and prompted marine insurers to expand designated high-risk zones covering additional areas near Saudi ports.
Saudi Arabia has proposed creating a multinational maritime defense coalition to strengthen protection for commercial shipping lanes and safeguard global energy supply routes across the Red Sea and surrounding waters.
As shipping risks continue to grow, an increasing number of Saudi oil cargoes and other commercial vessels have been rerouted through alternative corridors, highlighting the broader impact of the conflict on global trade.
Diplomatic efforts to reduce tensions remain ongoing. Oman has presented Iran with a proposal supported by several Gulf states that would establish a framework for managing navigation through the Strait of Hormuz, including a voluntary fee system for commercial vessels. While Iran has publicly rejected the proposal, officials have indicated that discussions with Oman over the future management of the strategic waterway are continuing.
Energy markets remain focused on developments in the Middle East, with investors closely monitoring military activity, diplomatic negotiations, and the security of major shipping lanes. Any prolonged disruption to traffic through the Strait of Hormuz or nearby maritime routes could have significant consequences for global oil supplies, transportation costs, and energy prices in the months ahead.
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