New military action near key shipping lanes reinforces supply disruption fears, sustaining crude price volatility and elevated freight costs.
The US launched a fresh wave of strikes against Iranian military assets near the Strait of Hormuz at 5 p.m. ET Sunday, targeting areas west of Bandar Abbas and around Qeshm and Jask. The operation aims to degrade Tehran’s ability to threaten shipping through the critical corridor, which handles roughly 20% of global oil and LNG flows.
The strikes follow weekend escalation and mark a sustained campaign rather than a one-off response, according to officials. Prior attacks had already lifted crude prices, with traders now pricing in prolonged volatility and higher war-risk insurance premiums for Gulf freight.
Explosions near Iranian military infrastructure are expected to keep supply risks elevated, with no near-term de-escalation signaled. The US maintains the southern shipping route remains open, but market concerns persist over further disruptions.