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

DOHA — A Qatari liquefied natural gas (LNG) tanker was at risk of exploding and a Saudi crude oil tanker was damaged near the Strait of Hormuz on Tuesday, sending oil prices higher as maritime authorities raised the threat level for vessels transiting the waterway to "severe."

The attacks also disrupted a fragile détente between the United States and Iran that had been in place since late June, when both countries agreed to reopen the strategic shipping lane following a three-month conflict that disrupted global energy supplies. In response, the White House revoked a license that had allowed Iran to sell oil, saying Tehran's actions in the Strait of Hormuz were "wholly unacceptable."

The U.S. Navy-led Joint Maritime Information Center (JMIC) raised the security threat level for vessels transiting the strait from "substantial" to "severe," citing confirmed hostile actions and warning of continued naval activity, heavy congestion, and increased monitoring by Iran's Islamic Revolutionary Guard Corps.

The Strait of Hormuz, one of the world's most important energy corridors, previously carried about one-fifth of global oil and gas supplies before the conflict began. Shipping traffic has gradually resumed but remains well below pre-war levels.

Oil prices climbed nearly 6% in post-market trading, with Brent crude approaching $76 per barrel as concerns grew over renewed instability in the region.

The Qatari LNG tanker Al Rekayyat was struck on its port side and caught fire in its engine room, leaving the vessel at risk of exploding, according to sources familiar with the incident. The crew was reported safe and evacuated.

Qatar's Foreign Ministry blamed Iran for the attack and summoned the deputy Iranian ambassador to lodge a formal protest. It marked the first time a Qatari LNG vessel had been attacked since the conflict began in late February.

A Saudi-flagged supertanker, Wedyan, was also damaged while transiting the Strait of Hormuz near Oman's coast. Saudi Arabia condemned the attack and held Iran fully responsible for the incident.

Iran denied wrongdoing, saying commercial vessels that failed to coordinate with Iranian authorities or tampered with their tracking systems increased security risks. Tehran added that it remained committed to ensuring safe navigation through the strait.

According to ship-tracking service Kpler, only about 16 vessels passed through the Strait of Hormuz on Tuesday, the lowest daily total in nearly three weeks. Daily traffic has averaged between 25 and 40 ships over the past week, compared with roughly 125 before the conflict.

Later on Tuesday, the British military's United Kingdom Maritime Trade Operations (UKMTO) reported that another tanker was struck by a drone while transiting the strait. The vessel sustained minor damage but continued to its next destination.

The attacks also drove up shipping costs, with average daily tanker charter rates inside the Gulf rising to nearly $300,000 from less than $200,000 the previous week.

Meanwhile, the United States and Iran remain engaged in negotiations over Tehran's nuclear program and the future security of the Strait of Hormuz. U.S. President Donald Trump said Washington would either reach an agreement with Iran or "finish the job," renewing the threat of military action. Iran's foreign minister responded that formal negotiations would not proceed as long as U.S. threats continued. -Reporting by Maha El Dahan, Jonathan Saul, Marwa Rashad, Andrew Mills, Jarrett Renshaw, Liz Hampton, Jasper Ward, Costas Pitas, Mrinmay Dey, Enas Alashray, Renee Maltezou, Menna Alaa El Din and Arathy Somasekhar; Writing by Yousef Saba and Jonathan Saul; Editing by Jamie Freed, Kate Mayberry, Ros Russell, Liz Hampton and David Gaffen/Reuters