US strikes tanker as Iran blockade jolts oil markets
The United States fired on a commercial vessel heading to Iran’s primary oil export terminal, escalating tensions in the Strait of Hormuz and driving crude prices higher as a fragile diplomatic truce collapses.
The US military attacked a commercial tanker bound for Iran’s Kharg Island on July 16, marking the first publicly announced strike since Washington reinstated a naval blockade against Iranian ports. An American aircraft fired Hellfire missiles into the smokestack of the Curacao-flagged M/T Belma after the vessel allegedly ignored multiple warnings in international waters. “The ship is no longer transiting to Iran,” US Central Command said, noting the tanker was unladen.
The physical enforcement of the blockade has immediately rattled energy markets, which had briefly priced in a de-escalation following a June peace memorandum. Brent crude settled at $84.51 a barrel on July 16, while US West Texas Intermediate traded near $80, extending gains as traders weighed the risk of widespread disruptions to Persian Gulf shipping. Because Kharg Island serves as Iran’s main crude export terminal, any military action near its waters raises the threat of a direct supply shock.
The strike effectively torpedoes the 60-day diplomatic process agreed upon in June, which was meant to follow a joint US-Israeli war against Iran launched in late February. Tehran has condemned the blockade as an act of “piracy” and a clear violation of international law. Prior to the blockade's premature restoration at 4 p.m. ET on July 14, Iran claimed it had exported more than 80 million barrels of crude and petroleum products in just 26 days.
The reimposed restrictions have triggered a dangerous standoff over the Strait of Hormuz, with both Washington and Tehran currently claiming control of the vital waterway. Iranian officials have warned that vessel traffic will proceed only under routes and rules dictated by the Islamic Republic's armed forces. This uncertainty is already forcing neighboring energy producers to alter operations, with Qatar delaying its planned ramp-up of liquefied natural gas production due to insecure transit conditions.
The incident is part of a broader escalation across the region. Early on July 14, a power plant on Iran's Kish Island was damaged in an attack attributed to the United States. During the first 24 hours of the blockade's enforcement, US forces also successfully redirected two other commercial vessels that complied with their instructions.
