The U.S. military completed its 12th consecutive night of strikes against Iranian military targets on Wednesday, hitting maritime capabilities, missile storage facilities, and air defense systems in a five-hour operation directed by President Donald Trump. Iran's Revolutionary Guards responded by declaring the Strait of Hormuz "completely closed" and under their control, warning that no tanker would be allowed passage without Iranian coordination while U.S. military action continues.
The escalating confrontation has pushed oil prices to their highest levels since early June. Brent crude futures climbed $2.42 to $96.49 by 0640 GMT on Thursday, marking a fifth consecutive day of gains. U.S. West Texas Intermediate crude rose $1.59 to $88.42. The previous session saw Brent settle up more than $3 at $94.07, just shy of a six-week high.
Dual Maritime Chokepoints Under Threat
The conflict now threatens two critical waterways simultaneously. Iran's Revolutionary Guards reported that an oil tanker caught fire after an explosion while attempting to navigate what they described as a mined route in the southern Strait of Hormuz near Oman's coast. Two other tankers turned back. The Guards' closure of the strait — through which roughly a fifth of global oil passes — represents a direct challenge to international maritime law and global energy security.
Meanwhile, Yemen's Iran-aligned Houthis opened a second front by targeting Saudi oil shipments in the Red Sea. The Houthis said they'd carried out a military operation against two Saudi tankers, with maritime security reports confirming that the Saudi-flagged Encelia was hit. The group claimed it forced about 10 ships to retreat after warning vessels against sailing to Saudi ports, though Reuters couldn't immediately verify that account. The Houthis said they're attempting to impose a naval blockade of Saudi Arabia.
Energy Markets Price in Prolonged Disruption
Priyanka Sachdeva, senior market analyst at Phillip Nova, said geopolitical premiums have returned to oil markets. She noted that a sustained price rally will require evidence of prolonged shipping disruptions or meaningful supply outages. Saul Kavonic, head of energy research at MST Marquee, warned that the new threat to Red Sea passage could interrupt up to 5 million barrels per day of oil supply — the main route for Gulf oil that bypasses the Strait of Hormuz.
U.S. Central Command said American forces have targeted dozens of Iranian military sites on land in July while resuming a blockade against Iran at sea. The latest strikes hit coastal surveillance sites and drone storage facilities, continuing a campaign that began when the U.S. and Israel attacked Iran on February 28. Iran responded with its own strikes on Israel and Gulf states hosting U.S. bases.
Escalating Threats and Legal Questions
Trump vowed on Wednesday to destroy an Iranian bridge or power plant every time Iran shoots at a ship in the Strait of Hormuz. He's previously threatened to target energy plants and bridges. Iran's joint military command warned through state media that if the threat was carried out, its forces would target regional oil, gas, electricity and economic facilities.
The 1949 Geneva Conventions on humanitarian conduct in war prohibit attacks on sites considered essential for civilians. International law experts in the United States said in April, after Trump's threats, that such attacks may amount to war crimes. Trump's threat that month to destroy Iran's entire civilization drew wide condemnation.
The conflict that began in February has killed thousands and displaced millions through U.S.-Israeli strikes on Iran and Israeli attacks on Lebanon. U.S. troop deaths have risen to 18 in recent days.
Why This Matters:
The simultaneous threat to both the Strait of Hormuz and the Bab el-Mandeb strait represents an unprecedented risk to global energy security. Iran's closure of Hormuz — even if temporary — demonstrates Tehran's willingness to weaponize the world's most critical oil chokepoint in response to military pressure. The Houthis' expansion of operations to target Saudi shipments shows how Iran's proxy network can open multiple fronts across the region, complicating any U.S. military strategy. Oil markets are pricing in not just current disruptions but the risk that this confrontation escalates further, with Iran threatening attacks on regional energy infrastructure and the U.S. promising retaliation for any Iranian action against shipping. The conflict that began in February has now evolved into a direct contest over control of maritime passages that carry roughly 30% of seaborne-traded oil. Any prolonged closure would force a global economic reckoning.