Shipping disruption deepens in Hormuz and Bab al-Mandeb as tanker fire reported

Maritime insurance costs are rising sharply as disruption intensifies in the Strait of Hormuz and the Bab al-Mandeb, two waterways that are central to global energy and trade flows. Iranian sources said an explosion set a tanker ablaze in the Strait of Hormuz after it tried to travel the southern route off the coast of Oman. They also said two other vessels turned back after the blast, underscoring the immediate effect on traffic through the waterway.

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The Islamic Revolutionary Guard Corps said the tanker fire happened on Thursday and claimed the three ships were acting under US orders. In the same report, it said the Strait of Hormuz was under its control and warned that no oil tanker would enter or leave while what it called America's actions in the region continued. Separately, Yemen's Houthi group announced a blockade of Saudi Arabian ports and ships in the Bab al-Mandeb Strait earlier this week, adding a second pressure point on maritime routes.

The disruption is already affecting shipping economics. Insurance rates through Hormuz are reported to be four times the five-year average, and marine insurers are becoming more reluctant to cover voyages through the strait as attacks become more frequent. Data cited in the report showed traffic through Hormuz falling to 10 vessels on Tuesday from 16 on Monday, far below the pre-war level of about 120 to 140 vessels a day, roughly half of them oil tankers carrying around 20 million barrels per day.

The developments matter because both chokepoints sit on routes that carry a large share of the world's oil and other cargo. Any sustained slowdown can push up freight and insurance costs, delay deliveries and add pressure to energy markets. The report said oil prices rose above $100 a barrel amid the shipping disruptions, highlighting how quickly maritime incidents can feed into wider economic risk.

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The Strait of Hormuz has long been a point of tension between Iran and the United States, and the current disruption comes against the backdrop of the wider conflict involving Iran, US forces and regional armed groups. The report also said the US has imposed a naval blockade of Iran-linked ships, while Tehran has insisted that ships consult it before trying to pass. In the Bab al-Mandeb, the Houthi announcement extends the threat to another strategic corridor linking the Red Sea to the Indian Ocean.

What remains unclear is the cause of the tanker explosion, the identity of the vessel involved and whether the reported turnbacks were directly linked to the blast. It is also not clear how long the blockade claims will affect traffic in Bab al-Mandeb or whether insurers will further restrict cover. The next developments to watch are any confirmation from maritime authorities, further statements from Iran or the Houthis, and whether shipping companies reroute more vessels away from both straits.

US Central Command said it concluded another round of strikes against Iranian military targets at 02:30 GMT on Thursday, extending the campaign for a 12th consecutive night. Iranian sources separately reported that an explosion set a tanker ablaze in the Strait of Hormuz after it tried to travel the southern route off the coast of Oman. The latest reports also included claims by Yemen's Houthis that they attacked two Saudi oil tankers in the Red Sea.

CENTCOM said the strikes targeted Iranian maritime capabilities, missile and drone storage facilities, coastal surveillance sites and air defence assets, but it did not specify the exact locations inside Iran. Iranian media reported damage and casualties in several places, including two deaths and 11 injuries after missiles struck near a passenger terminal in Shalamcheh, close to the Iraqi border. Local reporting also described overnight strikes in Khuzestan, Hormozgan, Bushehr and Jask, with power disruption reported near Bushehr's nuclear power plant.

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The developments underline how the confrontation is widening beyond direct military targets to shipping lanes that are central to global energy flows. The Strait of Hormuz is one of the world's most sensitive maritime chokepoints, and the Bab al-Mandeb strait has also been affected by Houthi naval activity, according to the reports. Any sustained disruption in either waterway can affect tanker traffic, insurance costs and regional security calculations.

The latest exchange also shows the conflict spilling across multiple fronts, with Iran's Islamic Revolutionary Guard Corps claiming attacks on US assets in Kuwait and Iranian outlets reporting strikes in western and southern provinces. The reports point to a pattern of reciprocal action in which military sites, logistics hubs and maritime infrastructure are all being drawn into the same cycle of escalation. That raises the risk of further retaliation at sea and on land, especially if either side treats shipping incidents as direct military provocations.

What remains unclear is the full scale of the damage from the latest strikes and whether the tanker fire in the Strait of Hormuz was caused by a direct hit, sabotage or another incident. It is also not yet clear how many of the reported attacks on shipping were successful or independently verified. The next developments to watch are any further US or Iranian statements, confirmation of casualties and damage, and whether the maritime incidents lead to additional strikes or new warnings for commercial shipping.

President Donald Trump posted on Truth Social at 22 July 2026 at 13:56 BST: "From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran. Thank you for your attention to this matter!

TRUMP"

Explanation:

President Donald Trump posted on Truth Social at 22 July 2026 at 13:56 BST: The post is an explicit threat of direct U.S. military retaliation against Iran if it fires on ships in the Strait of Hormuz, and it names one-for-one strikes on bridges or power plants, including near Tehran. That is a major escalation signal because it ties maritime harassment to attacks on critical national infrastructure, not just on launch sites or naval assets, and it removes ambiguity about how the White House would respond to renewed pressure on a waterway that carries a large share of global oil and LNG flows.

The likely impact is higher near-term risk for shipping, insurance, and energy markets, because any Iranian action in the strait could now be read as a trigger for immediate U.S. strikes on fixed targets deep inside Iran. The Strait of Hormuz has long been a flashpoint in U.S.-Iran confrontation, especially after the 2018 U.S. withdrawal from the Iran nuclear deal, subsequent sanctions escalation, and repeated episodes of tanker seizures, missile and drone attacks, and maritime harassment in the Gulf.

This post raises deterrence on paper, but it also increases the chance of rapid military escalation if either side miscalculates.

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