US tightens Iran naval blockade, alters 24 ship routes as war widens

The US military has altered the routes of 24 merchant ships and disabled two vessels as part of an expanding naval blockade against Iran, the Pentagon said Wednesday, as tit-for-tat missile strikes drew Jordan, Kuwait and Egypt into the five-month conflict.

"The blockade is aimed at preventing maritime traffic to and from Iranian ports while allowing commercial shipping to continue transiting the Strait of Hormuz," US Central Command said in a statement, adding that its forces had boarded two vessels to enforce compliance.

Brent crude futures surged more than 8% to push above $90 a barrel Wednesday, reversing a plunge earlier this week when President Donald Trump had unexpectedly halted US strikes. Ship traffic through the Strait of Hormuz — which handles about 20% of global oil and gas shipments in peacetime — has plunged to 39 vessels during the week of July 20-26 from 82 a week earlier, according to Lloyd's List Intelligence.

The widening conflict risks choking off energy supplies through two of the world's most critical maritime chokepoints simultaneously, with Iran asserting control over the Strait of Hormuz and Yemen's Houthi militants declaring a naval blockade on Saudi Arabia in the Bab al-Mandab Strait. The last time a comparable disruption hit the Strait of Hormuz — during the Iran-Iraq tanker war in the 1980s — oil prices doubled and global shipping costs surged for three years.

Iran's Revolutionary Guards said Thursday they struck US military assets at the Azraq base in Jordan and the Ali Al Salem Air Base in Kuwait, while Jordan's military said its air defenses shot down five incoming Iranian missiles. Kuwait's Defense Ministry reported that an Iranian attack hit a building owned by a Chinese company in the country's north, killing one worker.

The US responded with what Central Command described as "a heavy wave of strikes" against dozens of IRGC targets across Iran, including military command centers, missile and drone facilities, and coastal defense sites on Qeshm Island and near Abadan. Iranian state media reported three civilians killed on Qeshm and three IRGC members killed in Zanjan province.

Conflict Spreads to Egypt and Iraq

A drone strike ignited fires on two natural gas vessels at Egypt's Damietta port Wednesday, the Egyptian cabinet confirmed, marking the first direct attack on the country since the conflict began in February. The port lies near the Suez Canal, one of the last remaining export routes for Saudi oil after the Houthis declared a blockade on Saudi shipping through the Bab al-Mandab Strait last week.

In a first for the five-month war, Saudi Arabia publicly joined US forces to strike Iran-aligned groups in eastern Iraq, killing at least 20 members of the Popular Mobilization Forces and four IRGC advisers, according to Iraqi and Iranian sources. Riyadh said the strikes were retaliation for drone attacks on Saudi oil facilities launched from Iraqi territory.

Supply Routes Under Pressure

The Strait of Hormuz blockade has already forced Saudi Arabia to reroute oil exports through a costly overland pipeline from the Red Sea port of Yanbu to the Mediterranean, while the Houthi threat to the Bab al-Mandab Strait — through which 10% to 15% of global seaborne trade normally passes — adds another layer of risk. The Houthis are discussing charging transit fees for commercial vessels passing through the southern Red Sea, according to sources familiar with the matter.

A QatarEnergy-controlled LNG tanker became the first vessel to exit the Strait of Hormuz since July 11 after receiving Iranian permission, according to ship-tracking data, suggesting Tehran is selectively allowing some traffic through the waterway it claims to control.

The US military has fewer than 1,000 Patriot interceptor missiles and fewer than 250 THAAD interceptors remaining, the Center for Strategic and International Studies estimated this week, raising concerns about Washington's ability to sustain a prolonged campaign while defending its bases and allies across the region.

Pakistan, a key mediator, confirmed Wednesday that negotiations between the US and Iran were "ongoing" but declined to provide details. Oman's proposal for joint management of the Strait of Hormuz — backed by Gulf states — was rejected by Tehran, though Iran's foreign ministry said talks with Oman were continuing.

This article is for informational purposes only and does not constitute investment advice.