Strait of Hormuz shipping risk raised to severe after tankers hit, reviving US-Iran tensions

Strait of Hormuz shipping risk raised to severe after tankers hit, reviving US-Iran tensionsSign up now: Get ST's newsletters delivered to your inboxVessels in the Strait of Hormuz, as seen from Musandam, Oman, on July 1. PHOTO: REUTERSPublished Jul 08, 2026, 05:07 AMUpdated Jul 08, 2026, 05:07 AMSet as preferred sourceSummariseA Qatari LNG tanker and a Saudi crude tanker were attacked near the Strait of Hormuz, raising the shipping threat level to "severe" and disrupting the fragile US-Iran detente.The White House revoked Iran's oil sale licence, warning that Iran's actions in the strait are "wholly unacceptable" and will have consequences.

Oil traffic remains below pre-war levels, with tensions impacting shipping flow and oil prices rising nearly 6%, while talks between the US and Iran on nuclear issues continue without agreement.AI generatedDOHA - A Qatari LNG tanker was at risk of exploding and a Saudi crude tanker was damaged near the Strait of Hormuz on July 7, sending oil prices higher as maritime authorities raised the threat risk for vessels transiting the waterway to “severe”.The attacks also disrupted a fragile detente between Washington and Tehran in place since late June, when the two governments agreed to reopen the crucial strait following the three-month war that throttled worldwide energy supplies.

On July 7, the White House revoked a licence it granted Iran to sell oil in an effort to ease tensions.While traffic through the strait has picked up in the last week, it remains spotty, ranging between one-third and one-fifth of its pre-war levels.Washington’s decision to pull the licence came with a warning to Iran that its actions in the strait were “wholly unacceptable” and would be met with consequences.

The White House granted the licence in June, easing decades-old sanctions as part of an agreement to reopen the strait.“This is not a small step by Washington,” said Brett Erickson, managing principal at Obsidian Risk Advisors. The revoked licence “was one of the concessions Iran needed to justify lifting its blockade over the Strait of Hormuz.”

The US Navy-led Joint Maritime Information Centre (JMIC) on July 7 raised the threat level to transit the strait to “severe” from “substantial” following the attacks, citing deliberate hostile action likely under current conditions, the first time the threat level has been set at that severe status since June 15.“The recent confirmed incidents highlight that the threat environment remains heightened and warrants extreme vigilance,” JMIC said in a note, adding that mariners should expect continued naval presence, congestion along transit routes, and more intense hailing by the Islamic Revolutionary Guard Corps.It is unclear whether the attacks will lead to another full-scale interruption of shipping traffic through the strait, which prior to joint US-Israeli attacks on Iran on Feb 28 was used to transit about one-fifth of the world’s oil and gas supplies.

The US and Iran are still in the midst of broader talks about Iran’s nuclear ambitions and its desire to control Hormuz; the United States wants to prevent Iran from acquiring a nuclear weapon.The two countries wrapped up a round of talks last week without a permanent agreement. The latest developments challenge the oil market’s assumption that the ceasefire will hold.

Oil prices were up nearly 6 per cent in post-market activity, with Brent crude nearing US$76 a barrel.“Iran’s attacks on three vessels since yesterday and the revocation of the Treasury waiver on Iranian oil sales signal that the ceasefire is not as solid and durable as the oil market has chosen to assume,” Bob McNally, president of Rapidan Energy Group, said.Qatar, Saudi Arabia blame IranThe Al Rekayyat tanker, loaded with liquefied natural gas, was hit on its port side, one source said, with another briefed on the matter adding the vessel was at risk of exploding due to a fire in its engine room.

The crew were safe and were being evacuated.Qatar’s foreign ministry said Tehran bore full legal responsibility for the attack, and summoned the deputy Iranian ambassador to protest targeting of the tanker.It is the first time an LNG ship from Qatar, a mediator in talks between the United States and Iran, has been struck since the start of the Iran war on Feb 28.

Nakilat, also known as Qatar Gas Transport Company, which owns the Al Rekayyat tanker, did not respond to requests for comment; nor did QatarEnergy, Qatar’s international media office, and US Central Command.The Saudi-flagged Wedyan supertanker was also damaged off Oman’s coast while transiting the strait.Saudi Arabia’s foreign ministry condemned the attacks, saying it holds Iran fully responsible for the damage to the Wedyan, which is owned and managed by Saudi shipping firm Bahri.

The firm did not respond to requests for comment.Commercial vessels using uncoordinated routes with Iran or tampering with the ship’s tracking face risks and disrupt Iran’s efforts to facilitate safe passage in t